What is a normal good?

A normal good is defined as a product whose demand increases as consumer income rises, demonstrating a positive relationship between income and quantity demanded. This means that when consumers have more income, they are likely to purchase more of these goods. The correct answer highlights the positive income effect associated with normal goods.

When income increases, consumers typically feel more financially secure and are inclined to buy more of a normal good rather than opting for inferior alternatives or foregoing purchase altogether. This behavior is a fundamental concept in microeconomics, illustrating how income changes can directly influence consumer purchasing decisions for certain types of goods.

The other options do not accurately encapsulate the characteristics of a normal good. While some goods might become less favored as income decreases or might have no impact on overall market demand, these scenarios do not pertain to the positive income effect that distinctly identifies normal goods.