ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An inferior good is an economic term that describes a good whose demand drops when people’s incomes rise.

Detailed explanation-2: -As the income of the consumer increases, the demand for an inferior good falls, and as the income decreases, the demand for an inferior good rise. Inferior goods include low-quality food items like coarse cereals. Inferior goods demand is inversely proportional to the income of consumers.

Detailed explanation-3: -Inferior goods are those goods, the demand for which falls as income of the consumer increases. Hence, there is a negative effect. Q. Income elasticity of demand for inferior goods is negative.

Detailed explanation-4: -Definition. Microeconomic household theory distinguishes between goods for which demand rises with increasing income levels (superior goods) and those for which demand falls as incomes go up (inferior goods).