Editing Neutral good

{{About|an economic term|the Dungeons & Dragons term|Alignment (Dungeons & Dragons)#Neutral good}}
In [[economics]], '''neutral goods''' refers either to [[good (economics)|goods]] whose [[demand]] is independent of [[income]],<ref name=":0">{{Cite book|title=Economics|last=Arnold|first=Roger A.|date=2008|publisher=Thomson South-Western|isbn=9780324538014|edition=Eighth|location=Mason, OH, USA|pages=58|oclc=131000286}}</ref> or those that have no change on the consumer's utility when consumed.<ref name=":1">{{Cite book|title=Intermediate microeconomics : a modern approach|last=Varian|first=Hal R.|publisher=W. W. Norton|year=2014|isbn=9780393919677|edition=Ninth|location=New York|pages=41|oclc=879663971}}</ref> 

Under the first definition, neutral goods have [[substitution effect]]s but not [[income effect]]s. Examples of this include prescription medicines such as insulin for diabetics. An individual's income may vary, but their consumption of vital medicines remains constant.<ref name=":0" />

The second definition says that a good is neutral if the consumer is ambivalent towards its consumption. That is, the consumption of that good neither increases  nor decreases the consumer's [[utility]]. For example, if a consumer likes texting, but is neutral about the data package on his phone contract, then increasing the data allowance does not alter his utility. An [[indifference curve]]—constructed with data allowance on the Y axis and text allowance is on the X axis forms a vertical line.<ref name=":1" />

==References==
{{reflist}}

{{Goodtypes}}

{{DEFAULTSORT:Neutral Good}}
[[Category:Goods (economics)]]


{{trade-stub}}