Normal Goods

Normal goods are products or services whose demand increases when consumers have higher income. In other words, as people earn more money, they tend to buy more of these goods. For example, when someone gets a raise, they might purchase more organic food, nicer clothing, or upgrade their car. Normal goods contrast with inferior goods, which see a decrease in demand as income rises. Understanding normal goods helps in analyzing consumer behavior and economic trends, as they reflect how purchasing patterns change with shifts in income levels.