Question

3. The term normal goods refers to what kind of goods?

Answer 1

The term normal goods refers to goods that consumers demand more of when their incomes increase

Answer: goods that consumers demand more of when their incomes increase

Normal goods are defined as those goods whose demand tends to increase or decrease with regard to the income of the consumer i.e., when the income of the consumer increases, the demand for the goods also increases and vice versa. Sometimes there is an increase in the demand for the goods when there is an increase in the population of an area too and vice versa. There is an elastic relationship between demand for normal goods and income.