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. These goods fall out of favor as incomes and the economy improve as consumers begin buying more costly substitutes instead.

Detailed explanation-2: -In economics, an inferior good is a good whose demand decreases when consumer income rises (or demand increases when consumer income decreases), unlike normal goods, for which the opposite is observed. Normal goods are those goods for which the demand rises as consumer income rises.

Detailed explanation-3: -Inferior goods refer to those goods whose demand decreases with an increase in income. For example, if the demand for “jaggery” decreases with an increase in income, then “jaggery” is an inferior good.

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).

Detailed explanation-5: -If a good is a normal good, increases in income will result in an increase in demand while decreases in income will decrease demand. b. If a good is an inferior good, increases in income will result in a decreasein demand while decreases in income will increase demand. 1.