Which of the following is an example of a normal good?

Which of the following is an example of a normal good?

• A. Used cars
• B. Top ramen
• C. Clothing
• D. Used clothes

Answer: (C)

A normal good is defined as a good for which demand increases as consumer income rises, and demand decreases as consumer income falls. It reflects the consumer's preference for higher-quality or more expensive items as they have more purchasing power. Clothing fits this definition because, as income increases, individuals are likely to purchase more clothing or opt for higher-quality or brand-name items, indicating a positive relationship between income levels and demand for clothing. In contrast, used cars and used clothes may not necessarily increase in demand with rising incomes; consumers might opt for new vehicles or brand-new clothing instead. Top ramen is often considered an inferior good, as its demand may rise when consumer incomes fall, representing a shift towards lower-cost options. Thus, clothing exemplifies a normal good as it correlates with increasing consumer preferences aligned with rising incomes.

A normal good is defined as a good for which demand increases as consumer income rises, and demand decreases as consumer income falls. It reflects the consumer's preference for higher-quality or more expensive items as they have more purchasing power.

Clothing fits this definition because, as income increases, individuals are likely to purchase more clothing or opt for higher-quality or brand-name items, indicating a positive relationship between income levels and demand for clothing.

In contrast, used cars and used clothes may not necessarily increase in demand with rising incomes; consumers might opt for new vehicles or brand-new clothing instead. Top ramen is often considered an inferior good, as its demand may rise when consumer incomes fall, representing a shift towards lower-cost options. Thus, clothing exemplifies a normal good as it correlates with increasing consumer preferences aligned with rising incomes.