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: -An inferior good is a good that consumers demand less of when their income increases.

Detailed explanation-3: -Inexpensive foods like instant noodles, bologna, pizza, hamburger, mass-market beer, frozen dinners, and canned goods are additional examples of inferior goods. As incomes rise, one tends to purchase more expensive, appealing or nutritious foods.

Detailed explanation-4: -As income increases, the consumer will go in for superior goods and consequently the demand for inferior goods will fall.

Detailed explanation-5: -An increase in the inferior good’s price means that consumers will want to purchase other substitute goods instead but will also want to consume less of any other substitute normal goods because of their lower real income.