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Economics - Financial Markets 19 Online
OpenStudy (anonymous):

what is the difference between normal goods and inferior goods?

OpenStudy (aa1602):

Normal goods tend to be consumed in greater quantity as people earn more money at about the same rate as the increase in income. So the demand for normal goods changes in the same direction with the change of income. An "inferior good" is one where the consumption actually goes down as people make more money. So, the demand for inferior goods changes in the opposite direction of the change in the income.

OpenStudy (anonymous):

Normal good is consumed in greater quantity as your income rises whereas the quantity of inferior goods goes down.For example your income rises you switch from matchbox to lighters so lighter would be your normal good and matchbox your inferior good. Hope that helps :)

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