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Inferior goods: are such goods that have an inverse relation between the income of the consumer and demand of the good. Example - air coolers are inferior goods, if on the increase of the income of consumer, the demand of coolers decrease as the consumer would now like to buy Air conditioners.
Giffen goods: are the special type of inferior goods in which the price effect is negative. Example - bread is a giffen good for a poor person. Because when there is an increase in the price of bread, the demand of bread may also go up.
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