the Diff btwn Normal, Inferior & Giffen goods


Well, most of the economics Students (including Masters) find it difficult to differentiate among these three types of goods

Let me clarify the difference.

Whenever we purchase a good, we keep two things in mind.
the price of the good and
our Income

Normal good.

Price and Qd -ve relationship (price increases, Qd decreases and vice versa)
Income and Qd +ve relationship (income increases, Qd also increases)


Inferior good.

Price and Qd -ve relationship (price increases, Qd decreases and vice versa)
income and Qd -ve relationship (income increases, Qd decreases and vice versa)


Giffen good it is exactly the opposite of normal good.

Price and Qd +ve relationship (price increases, Qd increases)
Income and Qd -ve relationship (income increases, Qd decreases and vice versa)


BEST OF LUCK