Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer also inferior for all the comsumers ? Explain

Distinguish between an inferior good and a normal good. Is a good whic

1.	Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer also inferior for all the comsumers ? Explain
Answer» Solution :When with the rise in INCOME of consumer demand for a good increases, that good is a normal good for that consumer. If with rise in income demand for the good decreases than that good is inferior for that consumer. A good is not necessarily inferior for all the CONSUMERS. A good which is inferior for a HIGHER income consumer may be a normal good for the lower income consumer. It is not the consumer but the income level of the consumer which DETERMINES whether a good is normal or inferior.