What is the Difference Between Normal Goods and Inferior Goods?
🆚 Go to Comparative Table 🆚The main difference between normal goods and inferior goods lies in the change in their demand in relation to a change in income. Here are the key differences between the two:
- Normal Goods: These are products and services that see an increase in demand when incomes rise. Examples of normal goods include household appliances, recreation and health products, and quality clothing and footwear. The income effect of normal goods is positive, meaning that as income increases, the demand for these goods also increases.
- Inferior Goods: These are products and services that see a decrease in demand as incomes rise. Examples of inferior goods include synthetic clothing found in low-cost box retailers, boxed and canned foods, and low-quality health products. The income effect of inferior goods is negative, meaning that as income increases, the demand for these goods decreases.
In summary, the demand for normal goods increases with an increase in income, while the demand for inferior goods decreases with an increase in income.
On this pageWhat is the Difference Between Normal Goods and Inferior Goods? Comparative Table: Normal Goods vs Inferior Goods
Comparative Table: Normal Goods vs Inferior Goods
Here is a table comparing the differences between normal goods and inferior goods:
| Feature | Normal Goods | Inferior Goods |
|---|---|---|
| Definition | Goods whose demand increases with an increase in the consumer's income. | Goods whose demand decreases with an increase in the consumer's income. |
| Income Effect | Positive income effect, meaning the demand for the good increases as consumer income increases. | Negative income effect, meaning the demand for the good decreases as consumer income increases. |
| Demand Curve | Has a positive slope, indicating that the quantity demanded increases as the price of the good increases. | Has a negative slope, indicating that the quantity demanded decreases as the price of the good increases. |
| Examples | Furniture, clothing, automobiles, household appliances, recreation and health products, and quality clothing and footwear. | Single door refrigerators, boxed and canned foods found at dollar stores, and low-quality health products. |
Read more:
- Giffen Goods vs Inferior Goods
- Goods vs Products
- Goods vs Services
- Good vs Bad
- Consumer Goods vs Capital Goods
- Ordinary vs Extraordinary
- Good vs Evil
- Commodity vs Product
- Good Sale vs a Great Sale
- Traditional Trade vs Modern Trade
- Bad vs Wrong
- Cost of Sales vs Cost of Goods Sold
- Well vs Good
- Rich vs Poor
- Supply vs Demand
- Elastic vs Inelastic
- Quality vs Value
- Inferiority vs Superiority Complex
- Healthy Food vs Junk Food