What do you mean by a normal good?

Question

Philoid · Accepted Answer

A good having inverse relationship with price but direct relationship with income is called Normal goods. The demand for normal good increases with increase in income and decreases with rise in price.

At price P, the quantity demanded is Q, when the price increases to P₁ the quantity demanded is reduced to Q₁. When the price decreases to P₂ the quantity demanded is increased to Q₂

At income P, the quantity demanded is Q, when the income increases to P₁ the quantity demanded is increased to Q₁. When the income decreases to P₂ the quantity demanded is decreased to Q₂