Question

Difference between normal inferior and giffen goods in a chart

Answer 1

hi

Giffen goods are goods whose demand increases with the increase in its price and vice versa. On the contrary, inferior goods are those goods whose demand decreases with an increase in the consumer's income. ... So, this article might help you in understanding the difference between Giffen goods and Inferior goods

Difference Between Giffen Goods and Inferior Goods

Last updated on September 28, 2017 by Surbhi S

giffen vs inferior goodsIn economics, the term ‘goods’ is defined as a commodity that satisfies human wants, i.e. something which provides utility to consumers. Various types of goods are studied in economics, like normal goods, inferior goods, luxury goods, Veblen goods, Giffen goods. Giffen goods are goods whose demand increases with the increase in its price and vice versa.

 

On the contrary, inferior goods are those goods whose demand decreases with an increase in the consumer’s income. As the income effect of Giffen goods and Inferior goods is negative, the two are commonly juxtaposed for one another. So, this article might help you in understanding the difference between Giffen goods and Inferior goods.

Content: Giffen Goods Vs Inferior goods

Comparison Chart

Definition

Key Differences

Conclusion

Comparison Chart

BASIS FOR COMPARISON GIFFEN GOODS INFERIOR GOODS

Meaning Giffen goods refers to those goods whose demand goes up with the rise in the prices. Inferior goods are goods whose demand falls down with the rise in the consumer's income over a specified level.

What is it? Exception to the law of demand. Determinant of   demand.                                                          

Close substitutes              No                                    Yes

Demand Curve Upward Sloping         Downward Sloping

Price Effect         Negative                                   Positive

hope it helps (: