show how normal and inferior goods are differently affected by an increase or decrease in income of the buyer
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Difference Between Normal Goods andInferior Goods. The goods whose demand tends to increase as the income of the consumer rises, are called normal goods. ... When income elasticity is less than one, then there is a decrease in quantity demanded.
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Increase and decrease in inferior goods causes effect directly to income of buyer while it is not affected inthe case of normalgoods.
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