ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A normal good is a good that experiences an increase in demand due to an increase in a consumer’s income. Normal goods have a positive correlation between income and demand. Examples of normal goods include food, clothing, and household appliances.

Detailed explanation-2: -Understanding the Income Effect For normal economic goods, when real consumer income rises, consumers will demand a greater quantity of goods for purchase. The income effect and substitution effect are related economic concepts in consumer choice theory.

Detailed explanation-3: -Normal Goods and Consumer Behavior Larger income leads to changes in the consumers’ behavior. As income increases, consumers may be able to afford goods that were not previously available to them. In such a case, the demand for the goods increases due to their attractiveness to consumers.

Detailed explanation-4: -Detailed Solution. The correct answer is Demand increases when income increases. A normal good is a good for which demand increases as consumers income increases and demand decreases as consumer income decreases. Normal goods demand is directly proportional to the income of consumers.

Detailed explanation-5: -With an increase in income, consumers will purchase larger quantities, pushing demand to the right, and causing the demand curve to shift right.