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Theory of consumer behaviour — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour4 Marks
Question
Explain the difference between an inferior good and a normal good.
OR
Distinguish between normal goods and inferior goods.
✓

Answer

Differences between normal and inferior goods are:
S. No.
Basis
Normal goods
Inferior goods
1.
Income effect
Normal goods have positive income effect.
Inferior goods have negative income effect.
2.
Movement
The demand curve for normal goods shifts to the right or left with the rise or fall in income respectively.
The demand curve for inferior goods shifts to the left or right with rise or fall in income respectively.
3.
Example
Full cream milk.
Toned milk.

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