Economists use the term normal good to refer to goods that
A) you consume on a daily basis.
B) you consume more of when your income falls.
C) you consume more of when your income rises.
D) consumers choose the same quantities of regardless of income.

Question

Quizplus · Accepted Answer

Normal goods are goods that consumers consume more of when their income rises. As income rises, consumers have more money to spend, so they can afford to buy more of the goods they enjoy. Examples of normal goods include luxury items such as designer clothing, expensive watches, and high-end cars.

Economists Use the Term Normal Good to Refer to Goods