What is the difference between normal goods and inferior goods in terms of demand?
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Normal or inferior are nicknames we give to goods depending on their income-elasticity of demand. If the good has a positive income-elasticity, we call normal goods, if they have a negative income-elasticity, its called inferior.
If the agent's income increases, then the demand of the normal goods will increase. On the other hand, the demand of the inferior goods will decrease. (Ceteris paribus)
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Bus ride/Public transport is a perfect example of an inferior good. Say your income is very high then surely you would get yourself an expensive car(Privileged good) instead of using public transportation(Inferior good) . But what if your income is low ?
normal goods and inferior goods definition can vary from person to person..very loosely speaking normal goods demand increases with income, income elasticity positive..for inferior goods demand decreases with income...