How are normal goods defined in economic terms?

Normal goods are defined as those for which demand increases as consumer income rises. This relationship is grounded in the basic principles of consumer behavior, where individuals tend to buy more of certain goods when they have more income to spend. As consumers' financial resources grow, they often seek out higher quality or more desirable products, thereby increasing the demand for these goods.

In economic terms, normal goods contrast with inferior goods, where demand decreases as income increases. Therefore, the correct choice accurately captures the fundamental concept that as people's income rises, their willingness and ability to purchase more of these goods also rises, reflecting positive income elasticity of demand. This concept is crucial for understanding how consumer preferences shift in response to changes in income levels.