Normal Goods
Normal goods are goods with positive income elasticity of demand - as incomes rise, demand increases. Most goods are normal; they include both necessities and luxuries.
Real World
As average UK household incomes rose through the 2010s, spending on branded organic food from retailers like Waitrose grew steadily, reflecting positive income elasticity of demand.
Exam Focus
State the sign and range of YED explicitly — normal goods have YED > 0, and examiners expect you to distinguish necessities (0–1) from luxuries (>1).
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