goods whose demand vary directly with money income are called?

Goods whose demand varies directly with money income are called normal goods. This means that as a person's income increases, their demand for these goods also increases. Normal goods are often considered to be luxury or non-essential items, such as high-end clothing, jewelry, or expensive cars. In contrast, inferior goods are goods whose demand decreases as a person's income increases. For example, if a person's income goes up, they may choose to buy a more expensive brand of bread instead of the cheaper, lower-quality bread they used to buy. Complementary goods are goods that are consumed together, such as peanut butter and jelly. If the price of one complementary good increases, the demand for the other good may also decrease. Substitutes are goods that can be used in place of each other, such as coffee and tea. If the price of one substitute good increases, the demand for the other good may increase. Overall, normal goods are goods whose demand varies directly with money income, meaning that as a person's income increases, their demand for these goods also increases.