ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A normal good has an income elasticity of demand that is positive, but less than one.

Detailed explanation-2: -Normal goods refer to those goods whose demand increases with an increase in income. For example, when income increases, the demand for “sugar” also increases. Thus “sugar” is a normal good.

Detailed explanation-3: -In economics, an inferior good is a good whose demand decreases when consumer income rises (or demand increases when consumer income decreases), unlike normal goods, for which the opposite is observed. Normal goods are those goods for which the demand rises as consumer income rises.

Detailed explanation-4: -Normal goods are different from inferior or luxury goods. Inferior goods have an income elasticity of less than 1, while luxury goods have an income elasticity that is greater than 1.