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Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer also inferior for all the consumers? Explain Or Give meaning of normal goods and inferior good. Give example in each case. Or Distinguish between a normal good and an inferior good. Give example in each case.

Answer» <html><body><p></p>Solution :(a) <a href="https://interviewquestions.tuteehub.com/tag/normal-1123860" style="font-weight:bold;" target="_blank" title="Click to know more about NORMAL">NORMAL</a> goods are the ones which have <a href="https://interviewquestions.tuteehub.com/tag/income-25499" style="font-weight:bold;" target="_blank" title="Click to know more about INCOME">INCOME</a> effect posititve whereas inferior goods are the ones which have income effect negative.<br/>(b) A rise in income of the consumer <a href="https://interviewquestions.tuteehub.com/tag/leads-540453" style="font-weight:bold;" target="_blank" title="Click to know more about LEADS">LEADS</a> to an increase in demand for 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> and vice-versa in case of normal goods whereas a rise in income of the consumer leads to a fall in demand for the commodity and vice-versa in case of inferior goods. <br/>Example :- Toned milk when compared to full cream milk.. <br/>Whether a good is inferior or not <a href="https://interviewquestions.tuteehub.com/tag/depends-948548" style="font-weight:bold;" target="_blank" title="Click to know more about DEPENDS">DEPENDS</a> on the income status of the consumer, hence a good which is inferior for a consumer may not be inferior for other consumer.</body></html>


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