| Normal Goods | Inferior Goods |
| • These are the goods for which the demand increases with the increase in the income of consumer. | These are the goods for which the demand decreases with the increase in the income of consumer. |
| • Examples for normal goods are food, cloths, electronic goods, luxury goods, etc. | • Examples for inferior goods are low quality of goods like unbranded products. |
| • There is positive relationship between income and demand. | • There is inverse relationship between income and demand. |
| • Here the demand curve shifts towards right, if the income of consumer increases. | • Here the demand curve shifts towards left, if the income of consumer increases. |
