Commodities that increase consumption with the increase of income are normal commodities. It shows that the indifference curve of high position is tangent to the consumption possibility line of high position. Normal goods can be further subdivided into necessities and luxury goods.

With the increase of income, the increase of necessities is getting smaller and smaller; With the increase of income, there are more and more luxury goods.

2, low-grade goods:

Low-grade goods are goods that consumers reduce their demand for such goods with the increase of income. The attributes of normal goods and low-grade goods are not static, but change with the change of consumers' income.

3. Ji Fen is good:

The total effect of price reduction is that the negative effect of income is greater than the positive substitution effect, which leads to a significant reduction in the demand for this commodity. Some high-end consumer goods, such as jewelry, calligraphy and painting, antiques, etc. It is also a phenomenon that prices and demand increase and decrease together. The analysis of income effect and substitution effect is the same as that of Jia Xu commodities.

Extended data:

kind

The demand curve can be divided into the following three categories:

1, individual demand curve: the relationship between the quantity of products that a single consumer is willing to buy and its price;

2. Market demand curve: the relationship between the quantity of products that all consumers are willing to buy in the market and their prices. The market demand curve can be obtained by horizontally overlapping the individual demand curves of consumers in the industry;

All customers of an enterprise are willing to buy a certain product of the enterprise.

The slope of market demand curve is greater than that of individual demand curve; The slope of enterprise demand curve is less than that of industry demand curve.

Baidu Encyclopedia-Demand Curve