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in Concept of Demand by (63.4k points)

Distinguish between inferior goods and normal goods.

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Normal goods are the goods for which the demand increases as income of the buyers rises. Thus, there is a positive relationship between income and demand. It is called Positive Income Effect, whereas the goods whose demand decreases when the income of consumer increases are called inferior Goods. An inferior good is the opposite of a normal good. Inferior goods can be viewed as anything a consumer would demand less of if they had a higher level of real income.

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