The demand curve for an inferior good reacts inversely to changes in income, while the demand curve for a normal good has a positive relationship with changes in income.

Question

Quizplus · Accepted Answer

This is the definition of inferior goods and normal goods, where inferior goods have a negative relationship with changes in income, while normal goods have a positive relationship with changes in income.

The Demand Curve for an Inferior Good Reacts Inversely to Changes