Question

Give an example of normal goods

Answer 1

An example of normal good is luxury car.

Explanation:

In economic terms, there are several types of goods. One of those types is the normal good. The normal good represents a good that experiences increase in demand with the increase in the incomes of the people. Basically this means that the people use their higher income to afford themselves and enjoy in goods that they were not able to afford and use when their income was smaller.

There are many examples of normal goods, such as the luxury cars, wine, clothing etc. The luxury cars are excellent example because when the people have lower income they are not able to buy them, so the demand for this type of cars is low. As the income increases though and the people have bigger financial power they start buying luxury cars, as people crave for them and find them attractive, so the demand gradually increases for them.

Answer 2

Answer: An example of normal goods is food. When a person's income increases, the increase in food purchase and consumption will also be greater.

Explanation:

In economics, a normal good is defined as that good or service where demand increases as income increases. That is, when a person's income increases, it is normal that this increase is accompanied by the increase in their goods or services that they acquire. It can also happen that if the good or service increases the person can be seen in a situation where people would reduce the acquisition of some of these.

There are various types of goods, there are those of first necessity that includes food for daily consumption. In this type of goods, their demand grows at a slower rate than the income of consumers. There are luxury goods or better, where their demand increases faster than the income of consumers. An example of this would be leisure services, clothing, meat, fish, etc.