110k views
1 vote
What does the term normal goods refers to?

User Cathi
by
8.3k points

2 Answers

5 votes

goods that consumers demand more of when their incomes increase

User Phil Leh
by
8.5k points
4 votes
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.
User Roney Thomas
by
8.7k points