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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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Normal and Inferior Goods

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

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117 news items

Western Journalism

Western Journalism
Thu, 23 Oct 2014 17:22:30 -0700

Michael Zehaf-Bibeau's friend, Dave Bathurst, recalled meeting the shooter several years ago at a mosque. While Zehaf-Bibeau first appeared to be a normal, good-natured man, it eventually became clear that he was suffering from some serious issues.
 
Eurweb.com
Thu, 23 Oct 2014 08:56:15 -0700

I think that everybody here is just very regular, normal, good people. And I think that's what they're interested in, just being actors and the celebrity part that comes with it, for me, it's difficult to manage. I'm not interested in it whatsoever ...
 
TheStreet.com
Wed, 22 Oct 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
Wed, 22 Oct 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, 22 Oct 2014 08:33:45 -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 ...

The Birmingham News - al.com

The Birmingham News - al.com
Tue, 21 Oct 2014 11:42:21 -0700

His dad was an alcoholic who left Cooper's mother when Cooper, now 64, was only 8 years old. "Dad got sober through AA (Alcoholics Anonymous)," Cooper said. "We have a normal, good, father-son relationship now, but it helped me to have more empathy.
 
TheStreet.com
Wed, 22 Oct 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
Mon, 20 Oct 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 ...
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