Definition of Normal good:
Good for which demand (consumption) increases as consumer income rises, but at a rate slower than the rate of increase in income. Defined also as a good for which the income elasticity of demand is positive but less than one. Also called necessary good, it is the opposite of inferior good.
A normal good, also called a necessary good, doesn't refer to the quality of the good but rather, the level of demand for the good in relation to wage increases or declines.
A normal good is a good that experiences an increase in its demand due to a rise in consumers' income. In other words, if there's an increase in wages, demand for normal goods increases while conversely, wage declines or layoffs lead to a reduction in demand.
How to use Normal good in a sentence?
- Normal goods has a positive correlation between income and demand.
- Examples of normal goods include food staples, clothing, and household appliances.
- The peoples income was getting higher and the economy was doing great, so that created a market for what was called a normal good .
- Sometimes the demand for a normal good will increase at such a rapid rate you will have to expand your production efforts.
- A normal good is a good that experiences an increase in its demand due to a rise in consumers' income.
- The report indicated that the normal good consumption was reflective of the overall state of the economy in that region.
Meaning of Normal good & Normal good Definition