Normal good facts for kids

This picture shows how a normal good and an inferior good are different.

In economics, a normal good is a type of item that people buy more of when they have more money. It's like when you get extra allowance, you might decide to go to the cinema more often. So, tickets for the cinema are a normal good.

On the other hand, an inferior good is an item that people buy less of when their income goes up.

What is a Normal Good?

A normal good is simply something you tend to buy more of as your income (the money you earn or receive) increases. Imagine you have a small amount of pocket money. You might buy basic snacks. But if your pocket money doubles, you might start buying fancier snacks or going to the movies more often. Those fancier snacks and movie tickets are examples of normal goods.

Income and Spending

When people have more money, they often choose to buy better quality items or more of the things they enjoy. This is a key idea in economics. For example, if a family's income goes up, they might decide to eat out at restaurants more often instead of cooking at home. Eating at restaurants would be a normal good for them.

It's important to remember that a "normal good" doesn't mean it's a fancy or expensive item. It just means that people's demand for it goes up when they have more money.

Examples of Normal Goods

Many everyday items are considered normal goods. Here are a few examples:

• New clothes: When you have more money, you might buy more new clothes or clothes from your favorite brands.
• Restaurant meals: As income rises, people often choose to dine out more frequently.
• Vacations: Traveling and going on holidays usually increases as people earn more.
• Electronics: Things like new video games, smartphones, or computers are often bought more when people have extra cash.
• Cinema tickets: As mentioned, if you have more money, you might visit the movie theater more often.

What About Inferior Goods?

The opposite of a normal good is an inferior good. For these items, when your income goes up, you actually buy less of them. This often happens because you can now afford better alternatives.

For example, if you usually take the bus because it's cheap, but then you get a well-paying job, you might start taking taxis or buying a car instead. In this case, bus rides would be an inferior good for you, because you switch to a more preferred option when you have more money.