User:Jones024/sandbox

Normal and Inferior goods

A normal good is a good that consumers demand more of when their income increases. This means that the demand for the good is in relation to a wage increase. A normal good can also be considered a necessary good. An example of a normal good is a new phone. When people have new jobs they usually save up to buy the newest phone that became available. Another example of a normal good is a car. When a constant income becomes available people are now able to afford cars. Food is also a normal good because people are now able to consistently buy food as long as they have a stable income.

An inferior good is a good that is demanded less by consumers when their income increases. This doesn't mean the product is faulty, it just means that it is purchased less when people make more money. A consumer would rather purchase a more costly alternative than inferior goods. In some areas bus passes may become less needed as people are able to afford cars. Another example of an inferior good is fast food, when people are able to afford groceries they will be less likely to purchase accessible cheap food like mcdonalds. An inferior good can also be an off brand toilet paper that is one ply rather than two ply.