Differentiate between normal and inferior goods.

Differences between normal and inferior goods.

In the context of economics, normal goods or superior goods are those goods, which are superior in terms of consumption for consumer and which the consumer gives priority to when there is an increase in income. The quality of such items is good. There is a positive relationship between the price of normal goods and their demand curve. The income-demand curve for such goods is positively sloped, that is, it slopes upward from left to right. As the income of the consumer increases, his demand for such goods also increases and if the income of the consumer decreases, the demand also decreases. Consumers buy such items when they have good income and such items are important for them, due to which they feel complete satisfaction.

Such as desi ghee, silk clothes, basmati rice, high end branded items etc.

Inferior or low-value goods refer to those goods which are inferior for consumer. The consumer buys such goods only when the income and purchasing power are low or when there is no other alternative in the availability of superior goods. The income-demand curve of inferior goods has a negative relationship. That is, this curve falls from left to right from top to bottom. As the income of the consumer decreases, he is forced to buy inferior goods. As consumer income starts increasing, he stops consuming inferior goods and starts buying superior goods.

Such as vegetable ghee in place of desi ghee, cotton or khadi cloth in place of silk cloth, thick grains like jowar, bajra, ordinary rice in place of basmati rice etc.


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