Question

What do you mean by a normal good?

Answer 1

Those goods that share a positive relationship with income but a negative relationship with price are called normal goods. In other words, if the income of a consumer increases, then the demand for a normal good also increases. However, the demand will fall with the rise in the price of that good.

That is,

If the price of a good (P_x) increases, thenthedemand for good (D_x) decreases

If a consumer’s income (M) increases, then thedemand for good D_x increases.