normal good meaning
[Economics]
A good whose consumption increases with income. Thus any good is normal which is not inferior; this applies to most goods. Normal goods are divided between necessities, with income elasticity of demand of less than one, and luxuries, with income elasticities of demand of over one.
A good whose consumption increases with income. Thus any good is normal which is not inferior; this applies to most goods. Normal goods are divided between necessities, with income elasticity of demand of less than one, and luxuries, with income elasticities of demand of over one.
Examples
More: Next- this should be a normal good practice
- normal goods are divided into precious goods and common goods according to the judgement of die consumer, such as die valu
- For normal goods, the Engel curve has a positive gradient.
- "He didn't have his normal good'pen.
- Children are normal goods once this influence of family background is controlled.
