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In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, normal goods are any goods for which demand
Demand

Economics*Demand ,the desire to own something and the ability to pay for it*Demand curve,a graphic representation of a demand schedule *Demand deposit, the money in checking accounts...
 increases when income increases and falls when income decreases but price remains constant, i.e. with a positive income elasticity of demand. The term does not necessarily refer to the quality of the good.

Depending on the indifference curve
Indifference curve

In microeconomic theory, an indifference curve is a graph of a function showing different bundles of good , each measured as to quantity, between which a consumer is indifferent. That is, at each point on the curve, the consumer has no preference for one bundle over another....
s, the amount of a good bought can either increase, decrease, or stay the same when income increases. In the diagram below, good Y is a normal good since the amount purchased increases from Y1 to Y2 as the budget constraint
Budget constraint

A Budget constraint represents the combinations of goods and services that a consumer can purchase given current prices and his income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices....
 shifts from BC1 to the higher income BC2.






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In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, normal goods are any goods for which demand
Demand

Economics*Demand ,the desire to own something and the ability to pay for it*Demand curve,a graphic representation of a demand schedule *Demand deposit, the money in checking accounts...
 increases when income increases and falls when income decreases but price remains constant, i.e. with a positive income elasticity of demand. The term does not necessarily refer to the quality of the good.

Depending on the indifference curve
Indifference curve

In microeconomic theory, an indifference curve is a graph of a function showing different bundles of good , each measured as to quantity, between which a consumer is indifferent. That is, at each point on the curve, the consumer has no preference for one bundle over another....
s, the amount of a good bought can either increase, decrease, or stay the same when income increases. In the diagram below, good Y is a normal good since the amount purchased increases from Y1 to Y2 as the budget constraint
Budget constraint

A Budget constraint represents the combinations of goods and services that a consumer can purchase given current prices and his income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices....
 shifts from BC1 to the higher income BC2. Good X is an inferior good
Inferior good

In consumer theory, an inferior good is a good that decreases in demand when consumer income rises, unlike normal goods, for which the opposite is observed....
 since the amount bought decreases from X1 to X2 as income increases.

Inferior Good

See also

  • Consumer theory
    Consumer theory

    Consumer theory is a theory of microeconomics that relates preferences to supply and demand. The link between personal preferences, consumption, and the demand curve is one of the most complex relations in economics....
  • Inferior good
    Inferior good

    In consumer theory, an inferior good is a good that decreases in demand when consumer income rises, unlike normal goods, for which the opposite is observed....
  • Superior good
    Superior good

    Superior goods make up a larger proportion of Consumption as income rises, and as such are a type of normal goods in consumer theory. Such a good must possess two economic characteristics: it must be scarcity, and, along with that, it must have a high price....