Question
Differentiate between Normal Goods and Inferior Goods.
✓
Answer
| S. No. | Basis | Normal Goods | Inferior Goods | ||||
| 1. | Meaning | Normal goods are those in which quantity demanded varies directly with the consumer's income. | Inferior goods are those in which quantity demanded varies inversely with a consumer's income. | ||||
| 2. | Schedule | Price of Normal good | Quantity demanded of normal good when Income of a consumer is ₹ 5000 | Quantity demanded good of normal good when Income of a consumer is ₹ 6000 | Price of Inferior Goods | Quantity demanded of Inferior goods when Income of a consumer is ₹ 5000 | Quantity demanded of Inferior goods when Income of a consumer is ₹ 6000 |
| 3. | | 150 | 20 | 25 | 150 | 20 | 18 |
| 4. | | 170 | 18 | 21 | 170 | 18 | 15 |
| 5. | Curve |  |  | ||||
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