Explain the difference between an inferior good and a normal good… - Vidyadip

Question

Explain the difference between an inferior good and a normal good.

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Answer

When with increase (decrease) in income of the buyer, the demand for the good decreases (increases), the good is called an inferior good.
When with increase (decrease) in income of the buyer, the demand for the good increases (decreases), the good is called normal good.

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