Share This Article:

Economic Definition of normal good. Defined.

Offline Version: PDF

Term normal good Definition: A good for which an increase in income causes an increase in demand, or a rightward shift in the demand curve. If demand increases as income increases, it is a normal good or a good with a positive income elasticity of demand. A normal good is one of two alternatives falling within the income determinant of demand. The other is an inferior good.

 

« nontariff barrier | normal profit »

Permalink: http://glossary.econguru.com/economic-term/normal+good

Alphabetical Reference to Over 2,000 Economic Terms