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In economics, normal goods are any goods for which demand increases when income increases, and falls when income decreases but price remains constant, i.e. with a positive income elasticity of demand.[1][2] The term does not necessarily refer to the quality of the good, but an abnormal good would clearly not be in demand, except for possibly lower socioeconomic groups.

In particular, when the price of a normal good is zero, the demand is infinite.

Depending on the indifference curves, the amount of a good bought can either increase, decrease, or stay the same when income increases. In the diagram below, good Y is a normal good since the amount purchased increases from Y1 to Y2 as the budget constraint shifts from BC1 to the higher income BC2. Good X is an inferior good since the amount bought decreases from X1 to X2 as income increases.

Examples include Holidays, Cars, diamonds, branded fashions, hi-tech products etc.

example of a normal good and an inferior good

See also[edit]

References[edit]


Original courtesy of Wikipedia: http://en.wikipedia.org/wiki/Normal_good — Please support Wikipedia.
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1000000 videos foundNext > 

The difference between normal and inferior goods

This movie goes over how depending on the type of good (inferior vs normal), a change in income could have different effects on the demand curve, for more in...

Normal and Inferior Goods

More free lessons at: http://www.khanacademy.org/video?v=wYuAwm-5-Bk How the demand for some goods could actually go down if incomes go up.

Microeconomics Practice Problem - The Demand Curve with Normal and Inferior Goods

This video shows how the demand curve changes (or doesn't change) based on whether a good is a normal good or an inferior good. The problem is taken from Ess...

Next to Normal - Good Morning America (May 27, 2010)

Alice Ripley, Brian d'Arcy James & Kyle Dean Massey of Broadway's NEXT TO NORMAL (by Tom Kitt & Brian Yorkey) perform I'm Alive, You Don't Know and I've Been...

Max Normal - Good Old Fashion Loving

Lyrics: ----------------------------------- hello everybody welcome to my tea party i'm glad y'all could make it underneath my clothes i'm all naked just lik...

Normal (Good Tracking)

Example Income and Subsitution Effects For Normal and Inferior Goods

Tutorial on understanding the income and substitution effects for normal and inferior goods when the price of a good rises and income and substitution effect...

7 - Max Normal - Good Old Fashion Loving

7th track off of Songs From The Mall.

7 - Good Old Fashion Loving - Max Normal

Track 7 - Good Old Fashion Loving - Max Normal Track 8 - http://youtu.be/KP6gAHqDlOw (You Talk Too Loud) Album: Songs from the Mall I don't own any of this.

Let's Play Persona 4 Part 178 - Normal/good ending path

Those questions are very very important.

1000000 videos foundNext > 

84 news items

 
TheStreet.com
Thu, 24 Jul 2014 07:14:52 -0700

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press ...
 
TheStreet.com
Wed, 23 Jul 2014 06:52:30 -0700

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press ...
 
TheStreet.com
Wed, 23 Jul 2014 07:26:15 -0700

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press ...
 
TheStreet.com
Tue, 22 Jul 2014 07:03:45 -0700

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press ...
 
TheStreet.com
Mon, 21 Jul 2014 08:11:15 -0700

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press ...
 
TheStreet.com
Mon, 21 Jul 2014 07:48:45 -0700

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press ...
 
Bucks County Courier Times
Mon, 21 Jul 2014 21:11:05 -0700

“He just didn't have his normal good stuff. He's a much better pitcher than what we saw tonight.” The Patriots added a run in the second and two more in the third to open up a 6-0 lead. The third-inning runs were unearned due to a costly two-out error ...
 
expressandstar.com
Mon, 21 Jul 2014 05:00:00 -0700

They swagger around, burn down buildings, set up roadblocks and murder unarmed civilians. The normal, good people,who simply want more freedoms can only weep and ask: “Why did our revolution go wrong?” Why? Because revolutions always go wrong.
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