Question

What do you mean by a normal good?

When is a good considered a normal good?

What is a normal good?

What are normal goods?

When is a good called normal good?

Answer 1

A good whose demand increases with an increase in a consumer’s income (and decreases with a fall in income) is called a normal good.

Answer 2

A good is called a normal good when its demand increases as consumer income rises, and conversely, its demand decreases when consumer income falls. It exhibits a positive income effect.