Normal Good vs Inferior Good
Normal Good and Inferior Good are two Supply & Demand concepts in AP Economics that students often mix up. In short: normal good is a normal good is a good for which demand increases when consumer income rises and falls when income decreases. Meanwhile, inferior good is an inferior good is a good for which demand decreases as consumers' income rises and increases as income falls. Here is how they compare side by side.
A normal good is a good for which demand increases when consumer income rises and falls when income decreases.
For normal goods, there is a positive relationship between income and demand. As consumers' incomes rise, they buy more of these goods, and vice versa. Examples include high-quality food, clothing, and electronics.
An inferior good is a good for which demand decreases as consumers' income rises and increases as income falls.
Inferior goods have a negative relationship between income and demand. As consumers' incomes rise, they switch to more expensive substitutes, causing demand for the inferior good to fall. Examples include generic products or public transportation.