Question

With the help of diagrams state the relationship between the compensated and the uncompensated demand curve in terms of normal and inferior goods.

Answer 1

Answer:

Corresponding notion is that of the two demand curves: The Uncompensated (Marshallian) demand curve deals with how demand changes when price changes, holding money income constant. The Compensated (Hicksian) demand curve deals with how demand changes when price changes, holding "real income" or utility constant.