normal good

  

Definition

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.

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  • 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.

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  • The report indicated that the normal good consumption was reflective of the overall state of the economy in that region.

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