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How is normal goods in different from inferior goods?
Verified Answer
How is normal goods in different from inferior goods?
Difference Between Normal Goods Inferior Goods
Meaning:
Normal goods are the goods whose demand goes up with the rise in consumer's income.
Inferior goods: Inferior goods are the goods whose demand falls down with the rise in consumer's income.
Income Elasticity: Positive
Inferior goods: Negative

Relationship between income changes and demand curve: Direct Relationship
Inferior goods:  Inverse Relationship

Preferred when: Prices are low
Inferior goods:   Prices are high
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How is normal goods in different from inferior goods?
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