The following table shows the differences between them:
| Point of differences | Normal Goods | Inferior Goods |
| Meaning | These are those goods whose demand increases with an increase in income. | These are those goods whose demand decreases with an increase in income. |
| Income effect | Income effect is Positive. | Income effect is negative |
| Relation | There is a direct relation between income and demand for normal goods. | There is an inverse relation between income and demand for inferior goods. |
| Example | Full Cream Milk | Toned Milk. |
