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NORMAL GOOD

In economics, normal goods are any goods for which demand increases when income increases. The term does not refer to the quality of the good.

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.

example of a normal good and an inferior good

See also

Types of goods

collective good (social good) - private good - common good - common-pool resource - club good - public good

rivalrous good and non-excludable good
complement good vs. substitute good
free good vs. scarce good, positional good

durable good - non-durable good - intermediate good (producer good) - final good - consumer good - capital good.
inferior good - normal good - ordinary good - Giffen good - luxury good - Veblen good - superior good
search good - (post-)experience good - merit good - credence good - demerit good