Distinguish between normal goods and inferior goods, with examples
|Basis||Normal Goods||Inferior Goods|
|Definition||Normal goods are those goods whose demand increases with the increase in income and whose demand decreases with a fall in income||Inferior goods are those goods whose demand increases with a fall in income and whose demand falls decreases with a rise in income.|
|Income Effect||In case of normal goods, there is a positive income effect||In case of inferior goods, there is a negative income effect|
|Examples||Branded Clothes, Wheat, Milk||Coarse Cereals, Public Transportation - Bus, rail pass|
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