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 ?
It is found in urine as a normal product of protein metabolism.
Instead of the normal product, the factory buys the kilogram at 250 FBU.
"I tell the team, 'You're not putting ad units anywhere-you've got a normal product experience where you have the natural element to fulfill a use case,"' Dhanani said.
The emitted spray is captured, and the content of active ingredient, or other functional ingredient, is assayed using the normal product assay method (e.g., HPLC).
"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.
"A big focus for us is to see if there is anything more we can do for our customers than what we provide as part of our normal product line," Korselt says.
The notions of normal product and tensor product of m-polar fuzzy graphs are introduced and some properties are studied.
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.