Difference between revisions of "Normal good"
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| − | A normal good is one whose consumption increases as money income increases, assuming the price of the good remains constant. Conversely, the consumption of a normal good decreases as money income of consumers decreases. Consumer goods are usually normal. | + | A '''normal good''' is one whose consumption increases as money income increases, assuming the price of the good remains constant. Conversely, the consumption of a normal good decreases as money income of consumers decreases. Consumer goods are usually normal. |
This term is easy to remember because a normal good typifies what is "normal" in response to increases or decreases in income of consumers. | This term is easy to remember because a normal good typifies what is "normal" in response to increases or decreases in income of consumers. | ||
Revision as of 02:38, February 4, 2008
A normal good is one whose consumption increases as money income increases, assuming the price of the good remains constant. Conversely, the consumption of a normal good decreases as money income of consumers decreases. Consumer goods are usually normal.
This term is easy to remember because a normal good typifies what is "normal" in response to increases or decreases in income of consumers.
A normal good is also known as a superior good.
