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: -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-3: -Inferior goods are a type of good whose demand decreases with an increase in the consumer’s income or expansion of the economy (which generally will raise the income of the population). The consumption of inferior goods is generally associated with people in the lower social-economic classes.

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: -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.