difference between normal goods inferior goods and giffen goods - Economics - Theory of Consumer Behaviour

Question

difference between normal goods inferior goods and giffen goods

Sukhbir Kaur · Accepted Answer

Solution

Difference between Normal goods, inferior goods, and Giffen goods
are as follow:-

NORMAL GOODS
INFERIOR GOODS
GIFFEN GOODS

The demand for normal goods has a direct
relation with the income of consumers i e with increase in income
of consumer the demand for such goods increases and vice versa
The demand for inferior goods has an
inverse relation with the income of consumers i e with an increase
in income of consumer demand of inferior good decreases and with
decrease in income demand increases
With the decrease in the price of
Giffen goods, the real income of consumer increases and
they prefer to buy superior goods hence their demand falls

For example- Clothes, car, etc
For example- maize
for example - maize, jowar

NORMAL GOODS	INFERIOR GOODS	GIFFEN GOODS
The demand for normal goods has a direct relation with the income of consumers. i.e. with increase in income of consumer the demand for such goods increases and vice versa.	The demand for inferior goods has an inverse relation with the income of consumers. i.e with an increase in income of consumer demand of inferior good decreases and with decrease in income demand increases.	With the decrease in the price of Giffen goods, the real income of consumer increases and they prefer to buy superior goods hence their demand falls.
For example- Clothes, car, etc	For example- maize	for example - maize, jowar

difference between normal goods inferior goods and giffen goods.