Commerce Exam > Commerce Questions > What is the difference between normal goods a...
Start Learning for Free
What is the difference between normal goods and inferior goods?
Verified Answer
What is the difference between normal goods and inferior goods?
Difference Between Normal and Inferior Goods
1.Goods are products that are used to satisfy the needs of a consumer. Unlike services, they have tangible properties.
2.Different types of goods exist. Examples of these are: luxury goods, inferior goods, and normal goods.
3.The difference between normal goods and inferior goods are their concepts. Normal goods increase in demand as the income of the consumer increases while inferior goods decrease in demand as the income increases.
This question is part of UPSC exam. View all Commerce courses
Most Upvoted Answer
What is the difference between normal goods and inferior goods?
Normal goods are those goods which are neither luxurious nor low quality. Inferior goods are low quality goods. When Income of consumer increases, demand of Normal goods increases and demand of inferior goods decreases as consumer will prefer good quality goods. When Income of consumer decreases, demand of Normal goods decreases and demand of inferior goods increases as consumer can't afford normal( good quality ) goods.
Community Answer
What is the difference between normal goods and inferior goods?
1. When demand of a good increases with increase in income and decreases with decrease in income is known as Normal Good whereas when demand for a good decreases with increase in income and increases with decrease in income is known as Inferior Good.
2. Normal Good has positive income effect whereas Inferior Good has negative income effect.
2. Normal Good has positive income effect whereas Inferior Good has negative income effect.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
What is the difference between normal goods and inferior goods?
Question Description
What is the difference between normal goods and inferior goods? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is the difference between normal goods and inferior goods? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the difference between normal goods and inferior goods?.
What is the difference between normal goods and inferior goods? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What is the difference between normal goods and inferior goods? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the difference between normal goods and inferior goods?.
Solutions for What is the difference between normal goods and inferior goods? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of What is the difference between normal goods and inferior goods? defined & explained in the simplest way possible. Besides giving the explanation of
What is the difference between normal goods and inferior goods?, a detailed solution for What is the difference between normal goods and inferior goods? has been provided alongside types of What is the difference between normal goods and inferior goods? theory, EduRev gives you an
ample number of questions to practice What is the difference between normal goods and inferior goods? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup