Question
Differentiate between Normal Goods and Inferior Goods.
✓
Answer
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S. No.
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Basis
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Normal Goods
|
Inferior Goods
|
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1.
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Meaning
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Normal goods are those in which quantity demanded varies directly with the consumer's income.
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Inferior goods are those in which quantity demanded varies inversely with a consumer's income.
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2.
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Schedule
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Price of Normal good
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Quantity demanded of normal good when Income of a consumer is ₹ 5000
|
Quantity demanded good of normal good when Income of a consumer
is ₹ 6000
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Price of Inferior Goods
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Quantity demanded of Inferior goods when Income of a consumer is ₹ 5000
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Quantity demanded of Inferior goods when Income of a consumer is ₹ 6000
|
|
3.
|
|
150
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20
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25
|
150
|
20
|
18
|
|
4.
|
|
170
|
18
|
21
|
170
|
18
|
15
|
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5.
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Curve
|
 |
 |
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Quantity Sold
|
TR
|
MR
|
AR
|
|
0
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2
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4
5
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|
|
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| Price (Rs.) |
Output (Units) |
Total Revenue (Rs.) |
Marginal Revenue (Rs.) |
| - | 1 | 6 | - |
| 4 | - | - | 2 |
| - | 3 | 6 | - |
| 1 | - | - | - 2 |
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