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

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

1.	Distinguish between an inferior good and a normal good . Is a good which is inferior for one consumer also inferior fpr all the comsumer ? Explain.
Answer» Solution :When with the RISE in income of the consumer DEMAND for a good increases , that good is a normal good for that consumer . Ifwith rise in income demandfor the good decreases then 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 . ITIS not the consumer but the income level of the consumer which DETERMINES WHETHER a good is normal or inferior .