normal product

normal product

a good or service for which the INCOME-ELASTICITY OF DEMAND is positive, that is, as income rises, buyers purchase more of the product. Consequently, when the price of such a product falls, thereby effectively increasing consumers’ real income, then that price cut will have the INCOME EFFECT of tending to increase quantity demanded. This will tend to reinforce the SUBSTITUTION EFFECT of a price cut, which will cause consumers to buy more of the product because it is now relatively cheaper.

This applies to most products, with the exception of INFERIOR PRODUCTS, where the income effect is negative. See PRICE EFFECT.

References in periodicals archive ?
Alcohol is not a normal product - it is linked to 200 different medical conditions, including seven types of cancer.
Instead of HQ denouncing it because it was not part of the normal product offering, we took that idea, tested it in a few other franchise locations, and then rolled out illuminated paintings systemwide.
Our main task today is to create a normal product and the normal jobs so that a man could come to work, do the work well and get normal wage," the Head of Government said.
The situation is very dangerous, as the price of illegal production usually is significantly lower compared to the normal product, while its use by customers brings serious reputation problems to official manufacturers.
The mechanism for this is: a predominant cost-plus approach for FMCG, higher turnover products within a product range will have a lower margin applied to them by manufacturers or suppliers, List prices of particular products within a range are modified through negotiation between manufacturers or suppliers and the supermarkets and of manufacturers to determine the extent of private label production and what is their place relative to the normal product range produced.
Uranium oxide (UO2) is the normal product of uranium corrosion.
A recent study conducted at Texas Tech University found that after the age of 60, financial decision-making ability drops about 2 percent every year; it's just a normal product of aging.
By eliminating surface defects on the surface of the hopper, electropolishing made the powder product flow more readily and improved cleaning times during normal product maintenance.
Nicole added: "When people see reduced fat labels, in many cases not only do they end up eating more fat than if they'd chosen the normal product but their sugar levels skyrocket well over recommended limits.
Previous research has shown us that nearly 20% of shoppers are likely to put special offers in their basket even if they are more expensive than the normal product, and we know that nearly half of shoppers ignore buy-one-get-one-free items and only choose one.
Although free radicals are a normal product of cellular metabolism, excessive production of these molecules can overwhelm the antioxidant system in place to counteract them and leave vital skin proteins in the cell vulnerable to attack.
Customers will also benefit from other added services as per the normal product offer such as the '1hour guaranteed road-side assistance' as well as the 'priority repair service' - under which the repairs on your vehicle will start on the day you drop it at one of the AXA approved workshops.