A commodity is defined as normal when its demand changes in the same direction as______

1. Analyze the question The question asks what a normal good is. The key phrase is "demand changes in the same direction as __". We need the factor that moves demand in the same direction for a normal good.

2. Explain the concept Goods are classified by how demand responds to a change in consumer income:

• Normal good: when income rises, demand rises. When income falls, demand falls. Income and demand move in the same direction. The income elasticity of demand is positive. Examples are rice, clothes and phones.
• Inferior good: when income rises, demand falls. Income and demand move in opposite directions. The income elasticity is negative. Examples are garri (for some households), second-hand clothes and okrika items.

3. Solution, option by option

• A. Income: This is the defining factor. Higher income means higher demand for a normal good, so this fits.
• B. Price: For most goods, demand moves in the opposite direction to price. This is the law of demand, and it applies to normal goods too. So this does not fit.
• C. Taste: Taste affects demand for any good, but it is not what defines a good as normal.
• D. Preferences: This is similar to taste. It shifts demand but does not classify a good as normal or inferior.

4. Answer The correct option is A. income.

5. Exam tip Whenever you see "normal" or "inferior" goods, think income:

• Normal good: income ↑, demand ↑ (same direction)
• Inferior good: income ↑, demand ↓ (opposite direction)

Price is linked to the law of demand, not to the normal/inferior classification.