Diff btwn Normal, Inferior & Giffen goods
 

the Diff btwn [B][FONT="Arial Black"]Normal, Inferior & Giffen goods[/FONT][/B]


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 [B]two[/B] things in mind.
the [B]price[/B] of the good and
our [B]Income[/B]

[B][U]Normal good.
[/U][/B]
Price and Qd -ve relationship (price increases, Qd decreases and vice versa)
Income and Qd +ve relationship (income increases, Qd also increases)


[B][U]Inferior good.[/U][/B]

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


[B][U]Giffen good[/U][/B] 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)


[I][B]BEST OF LUCK[/B][/I]

I am student of m.phill economics... should i opt economics as an optional subject?? is it scoring??

Go through the past papers and have fair idea of the paper, there is nothing like more/less scoring thing. If you have good grip and interest in economics then only go for it.


Regards,