Normal goods: Normal goods are that goods which have positive income effect. If both the goods are normal, income consumption curve is upward sloping to the right i.e. with the increase in consumer’s income consumption increases.
Inferior goods: Inferior goods are that goods, which have negative income effect on that goods. In this case increase in consumer’s income will not increase the consumption.
Inferior goods: Inferior goods are that goods, which have negative income effect on that goods. In this case increase in consumer’s income will not increase the consumption.
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