In economic terminology, a normal good is a good
A) on which a monetary value cannot be placed.
B) that is liked only by normal people.
C) for which demand increases when price increases.
D) for which demand increases when income increases.

Question

Quizplus · Accepted Answer

A normal good is a good for which demand increases when income increases. This means that as people's income rises, they are able and willing to buy more of the good at each price level. Normal goods are the opposite of inferior goods, for which demand decreases as income rises.

In Economic Terminology, a Normal Good Is a Good