Question

what are normal goods and inferior goods?

Answer 1

A normal good is that good whose demand increases with the increase in income and vice versa.
An inferior good is that good whose demand decreases with the increase in income.

Answer 2

Normal goods are goods which show a -ve r/ship btw price and demand.ie when price a commodity is increased its demand tends to decrease.While inferior/giffen/goods of ostentation are goods which violet the law of Dd ie as price of such goods is increased their Dd tends to increase.Hence abnormal Dd curve.P'ple perceive there is an improvement in their quality e.g ;goods like jelleries,expensive watches etcs

Answer 3

When your income goes up, your normal goods consumption increases, and your inferior goods consumption decreases. Basically they are based on the income effect, which states that a person's preference on any goods can be defined by normal or inferior goods. If it is normal goods, you tend to buy more when your income goes UP, (eg. Luxury car, steakhouse dinner, premium gas, etc) and when it is inferior goods, you tend to buy more when your income goes DOWN. (eg. subway tickets, cheap noodles and such...)

Answer 4

The answer depends on how good your economics course is.

Some economists say thar necessities are inferior goods and take up a diminishing share of expenditure as income gros, even though actual expenditure remains the same.
Giffen goods are goods whose actual consumption declines as income grows. (See wiki)

Superior goods are goods thattake up an increasing share of income as income increases.

Neutral goods retain a constant proprtion of income and do not exist.