Economic

A normal good is a product which is increasing in demand of the real income for individual increases. On the other ways, a normal good is which for calculating its income elasticity of demand. If this coefficient is positive, and it is lower than 1, so the good which is belongs to normal good. If the economy income will increase, there are increasing in the demand for the goods and services. Give 3 examples of a normal good, such as: Luxury cars, Public transportation system, and Mobile phone.

An inferior good is kind of a good that increases in demand when the consumer income rises. It is a good which consumers demand less when their income increases. As incomes rise, people tend to buy more expensive, attractive and nutritious food. Similarly, the use of the good and service of the poor people for these examples such as: hamburger, mass-market beer, frozen dinners of alternatives and shoddy goods. As a rule, use and waste materials for sale to low-income people is the clearing and shoddy goods, even if their previous normal goods, and even luxury. As a rule that too many of good things are more easer to achieve, and have more costly substitutes which is offer more pleasure or at least variety become an available, the use of an inferior goods will diminishes. Give 3 examples of inferior goods such as: Frozen food, inter-city bus, and the fast-food.

The diamond is a normal good. First of all, that the diamond has a high cost, the customer will be accordance with the level of individual or economic rise or fall to decide whether to buy or not. And then the demand for diamond increase as income is increased. It is very important to know that diamond is originally classified under luxury goods. This means that the diamond is a luxury good, only people with high wages that can afford it. An increase in income will leads to an increase in the demand for diamond, diamond is a precious stone.