Normal good

In economics, a normal good is a good whose consumption rises when the income increases. As an example, people who earn more money, might go to the cinema more often. Tickets for the cinema are therefore a normal good.

A good where the consumption decreases when the income increases is called inferior.

Normal Good Media

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  Example of a normal good:As income increases from B1 to B3, the outward movement of utility curve I dictates that the quantity of good X1 increases in tandem. Therefore, X1 is a normal good. *Put another way, the positively sloped income consumption curve demonstrates that X1 is normal. The Engel curve of X1 would also be positively sloped.

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  The graph shows the change in demand for both normal goods and luxury goods due to a change in income. When the income rises from 500 to 700, the quantity demanded for normal goods rises from 800 to 900.