The term normal goods refers to what kind of goods?

Normal goods are luxury goods. When incomes increase, the consumption of normal goods increase. However, when incomes decrease, the consumption of normal goods decrease. The caveat is that the normal goods' prices do not waver, even in a fluctuating economy. Thus, normal goods have a positive income elasticity: the demand for the goods increase as incomes rise because there are more disposable incomes.

Examples of normal goods include: jewelry, boats, and expensive automobiles.

Inferior goods are the opposite of normal goods, since, as incomes rise, the consumption of normal goods does not increase.