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.
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