normal good

Popular Terms
Good for which demand (consumption) increases as consumer income rises, but at a rate slower than the rate of increase in income. Defined also as a good for which the income elasticity of demand is positive but less than one. Also called necessary good, it is the opposite of inferior good.

Use 'normal good' in a Sentence

Sometimes the demand for a normal good will increase at such a rapid rate you will have to expand your production efforts.
16 people found this helpful
The people's income was getting higher and the economy was doing great, so that created a market for what was called a normal good.
14 people found this helpful
The report indicated that the normal good consumption was reflective of the overall state of the economy in that region.
14 people found this helpful

Email Print Embed