What is the difference between an inferior good and a normal good?

The difference between an inferior good and a normal good is how they react to a change in the consumers income.If there was a rise in the consumers income, they would demand more for a normal good, as per the law of demand.However for an inferior good, a rise in income will lead to a fall in demand. A good example of an inferior good, to help you remember, is buses. As the consumers income rises they would demand less for bus journeys and instead move to substitutes like buying a car or calling a taxi.

Answered by Justin S. Economics tutor

1430 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain what a balance of trade deficit is


Explain why a government budget deficit is likely to stimulate economic growth.


8 What is likely to happen when the rate of interest increases? A) consumer spending increases B) firms buy fewer machines C) people hold more cash D) savers earn lower rewards


How can changes to taxes cause a reduction in the public deficit?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences