Distinguish between a normal good and inferior good. Give example in e

1.	Distinguish between a normal good and inferior good. Give example in each case.
Answer» <html><body><p></p>Solution :(i) Normal good are those goods whose <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> increases with an increase in income of the consumer and vice-versa whereas <a href="https://interviewquestions.tuteehub.com/tag/inferior-515744" style="font-weight:bold;" target="_blank" title="Click to know more about INFERIOR">INFERIOR</a> goods are those whose demand falls with an increase in income of the consumer and vice-versa.<br/>(ii) Income effect is <a href="https://interviewquestions.tuteehub.com/tag/positive-1159908" style="font-weight:bold;" target="_blank" title="Click to know more about POSITIVE">POSITIVE</a> in case of normal goods or there is a positive <a href="https://interviewquestions.tuteehub.com/tag/relationship-1183331" style="font-weight:bold;" target="_blank" title="Click to know more about RELATIONSHIP">RELATIONSHIP</a> between income and demand of the <a href="https://interviewquestions.tuteehub.com/tag/commodity-923558" style="font-weight:bold;" target="_blank" title="Click to know more about COMMODITY">COMMODITY</a> whereas income effect is negative in case of inferior goods or there is a negative relationship between income and demand of the commodity.</body></html>

Distinguish between a normal good and inferior good. Give example in each case.