What do you mean by a normal good? — Economics · Theory Of Consumer Behaviour

Question 9 of 26beginner🧠 RememberVery Short1 mark

What do you mean by a normal good?

Correct Answer

Normal goods are those goods for which the quantity that a consumer chooses increases as the consumer’s income increases and decreases as the consumer’s income decreases. Thus, the demand for a normal good moves in the same direction as the income of the consumer.

Exercise: EXERCISES | Q: 17

For More Understanding

Explanation

The answer is based on the textbook definition provided in the context, which distinguishes normal goods from inferior goods based on the direction of change in demand relative to income changes. For normal goods, there is a positive relationship between income and demand.