Explain the effect of the following on demand for a good:
(i) Rise in Income for Normal Goods.
(ii) Rise in Income for Inferior Goods.

Explanation

(i) Rise in Income for Normal Goods:

(a) For normal commodity, with a rise in income, the demand of the commodity also rise and vice-versa.
(b) Shortly, direct relationship of a consumer(say from Rs 5000to Rs 6000), the demand of normal goods shifts rightward from DD to `D_(1)D_(1)` as shown in above figure.
. (ii) Rise in Income for Inferior Goods:
(ii) Rise in Income for Inferior Goods:

(a) For inferior goods, with a rise in income, the demand of the commodity falls and vice-versa.
(b) Shortly, inverse relationship exists between income of a consumer and demand of inferior goods.
(c ) due to rise in income of a consumer (say from Rs 5000 to Rs 6000), the demand of inferior goods shifts leftward from DD to `D_(1)D_(1)` as shown in adjacement figure: