Advertisement Remove all ads

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

Distinguish Between

Distinguish between normal goods and inferior goods, with examples

Advertisement Remove all ads

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
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×