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Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsTheory of consumer behaviour2 Marks
Question
Distinguish between a normal good and an inferior good. Give example in each case.
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Answer

A normal good is one whose demand increases when income increases while an inferior good is one whose demand decreases with rise in income.

Suppose income of a consumer increases. As a result, the consumer reduces consumption of toned milk and increases consumption of full cream milk. In this case, toned milk is an inferior good for the consumer and full cream, milk is a normal good.

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