'Normal goods and inferior goods are relative terms'. Explain. - Vidyadip

Question

'Normal goods and inferior goods are relative terms'. Explain.

✓

Answer

This is true that normal goods and inferior goods are relative terms. A particular good becomes inferior in relation to other, e.g. Lifebuoy soap becomes inferior when it is compared to Lux brand of soap but it becomes normal when it is compared to Nirma soap.

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