A good is normal for a consumer if
A) it is always consumed in a consistent quantity.
B) its consumption rises when income rises.
C) its consumption falls when income rises.
D) some minimal level of the good must be consumed to assure the consumer's survival.
E) the assumption of "more is always preferred to less" holds.

Question

Quizplus · Accepted Answer

A good is considered normal if its consumption increases as the consumer's income increases. This means that the consumer has a positive income elasticity of demand for the good. It is opposite for an inferior good, where demand is inversely related to income. Therefore, option B correctly describes a normal good.

A Good Is Normal for a Consumer If