Question

A piece of good is a inferior good for one and at the same time normal good for another consumer explain

Answer 1

Yes, i agree with the above statement. A good can be normal or inferior depending on the level of consumer’s income. For instance, at a very low level of income, coarse cereals may be a normal good. However, for higher income level, ceteris paribus, coarse cereals will be an inferior good because with an increase in income, a consumer will reduce his/her consumption of inferior cereals and it will be substituted by superior cereals.

Answer 2

A same piece of good can be a normal good for one consumer, whereas it can be a inferior good for the other consumer.

Income range of the consumer plays an important role or the deciding factor of the good type.

Let us assume that the income of consumer A is high and that of consumer B is low.

Let the good of interest be 'Keypad mobile phone'.

For consumer A with higher income, it is an 'inferior good'.

But, the same good is a 'normal good' for the consumer B who has a lower income level.

When income level increases, the demand for a normal good increases.