Final answer:
Normal goods can have income elasticities less than one or greater than one. Goods with income elasticities greater than one are more likely to experience increased demand during a recession.
Step-by-step explanation:
Normal goods are products that have a positive income elasticity, meaning that as a person's income increases, their demand for these goods also increases. There are two types of normal goods: those with income elasticities less than one and those with income elasticities greater than one. For goods with income elasticities less than one, the increase in demand is relatively small compared to the increase in income. An example of this type of good could be staple food items, such as rice or bread, where a small increase in income may lead to a slight increase in the quantity consumed. On the other hand, goods with income elasticities greater than one experience a relatively larger increase in demand compared to the increase in income. Luxury items, like high-end cars or designer clothing, fall into this category. A slight increase in income may lead to a significant increase in the quantity consumed. In summary, during a recession, a person would prefer to work in an industry that produces normal goods with income elasticities greater than one, as these goods are more likely to experience an increased demand when the economy recovers.