Question

Q18- Explain the difference between inferior goods and normal goods. give Example in each case.

Answer 1

Normal goods are those goods the demand for which increases with the increase in income of a consumer and decreases with a fall in income.
articles of comfort and luxury belongs to this category.Car is an example of normal goods.
whereas inferior goods are those goods the demand for which decreases with an increase in income.
coarse cereals such as maize and Jowar are example of inferior goods.