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प्रश्न
Explain the difference between an inferior good and a normal good.
उत्तर
Inferior goods are goods which have a negative relationship between income and quantity demanded. Assuming that other things remain constant, an increase in the consumer’s income will lead to a decrease in the quantity demanded and a decrease in the consumer’s income will lead to an increase in the quantity demanded.
Normal goods are goods which have a positive relationship between income and demand. Assuming that other things remain constant, an increase in the consumer’s income will lead to an increase in the quantity demanded and a decrease in consumer’s income will lead to a decrease in the quantity demanded.
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Change in Quantity Demand
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