What's the difference between a normal good and a inferior good?

A normal good is a good in which as your income rises your demand for that good also rises. And if your income falls your demand for that good also falls. The best way to learn about normal goods is with examples. so an example of a normal good is watches, champagne, eating at restaurants , taxis. The best way to think of it is like this. If your salary went from £20,000 to £80,000 would you buy more of that particular good. if the answer is yes then it is a normal good. If my income went from £20,000 to £80,000 then i would most definitely buy more watches, eat at restaurants more often and get taxis instead of buses more. 

An inferior good however is one which as your income rises demand for that good falls. examples? public transport, own brands, cooking in, cheap airlines. If my income increased would i carry on cooking myself? would i fly ryanair or would i switch to the more luxurious British airways. they are basically poor quality "cheap" goods. 

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Answered by Logan L. Economics tutor

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