[This is part of the series: The Complete Guide To Economics 101.]
What is a normal good?
In economics, a Normal Good is a term for a good, or service, where demand for it increases as income increases.
This is the opposite of an inferior good.
And most things fall into the category of a normal good.
For example:
- As one’s income increases, on average, one would probably buy more clothes.
- As one’s income decreases, on average, one would probably buy fewer watches.
- As one’s income increases, on average, one would probably buy more cars.
- As one’s income decreases, on average, one would probably buy fewer computers.
