Normal Goods

Definition

Normal goods refer to products or services whose demand increases as consumer income rises. They have a positive income elasticity of demand.

Related terms

Inferior Goods: Inferior goods are products or services whose demand decreases as consumer income rises.

Luxury Goods: Luxury goods are high-end products or services that are not essential but desired by consumers when they have higher incomes.

Necessity Goods: Necessity goods are products or services that consumers require regardless of their level of income.