Principles of Microeconomics / Unit 2 MIC 0111 short lesson, about 20 seconds
Income: Normal and Inferior Goods
Captions available
The idea
For a normal good, higher income raises demand and shifts the curve right. For an inferior good, higher income lowers demand: buyers move to something they prefer.
In practice
Fresh fruit is usually normal; canned fruit and long bus rides are often inferior.
Where people slip
Inferior is not a judgment of quality, only the direction demand moves with income, which can differ between buyers.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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