Distinguish Between Normal Goods and Inferior Goods, with Examples - Economics

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Distinguish Between

Distinguish between normal goods and inferior goods, with examples

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Solution

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
Concept: Demand
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2018-2019 (March) 58/1/1

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