Answer:
Normal Good 1. A normal good is one whose demand increases with an increase in the money income of the consumer. 2. Normal goods have positive income effect, e.g. if a consumer buys more of milk for his family as his income rises, then milk will be called a normal good as shown in Diagram 1. 
Inferior Good 1. An inferior good is one whose demand falls with a rise in income of the consumer because he can now afford to buy a normal (superior) good. 2. Inferior goods have negative income effect; e.g. if a consumer reduces the consumption of toned milk when his income rises, then toned milk is an inferior good for that toned milk is an inferior good for that consumer, as shown in Diagram 2. 
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