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.

JS
Answered by Justin S. Economics tutor

2032 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain why average costs of a business may fall as it experiences growth.


How is the market equilibrium determined?


What is the price elasticity of demand ?


Evaluate the case that economic growth is always beneficial to a country


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning