What characterizes a normal good?

A normal good is characterized by the relationship between its demand and consumer income. Specifically, when consumers experience an increase in income, they tend to purchase more of these goods. This positive correlation between income and demand reflects the nature of normal goods, where consumers feel more financially secure and are willing to spend more on products that fall into this category.

For example, as individuals receive a raise or earn higher wages, they may choose to buy more organic food, brand-name clothing, or higher-quality electronics, all of which can be classified as normal goods. Thus, the demand increases when income increases, confirming the accurate depiction of normal goods within economic theory.

In contrast, other options describe scenarios that do not align with the characteristics of normal goods.