ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Typical examples of inferior goods include “store-brand” grocery products, instant noodles, and certain canned or frozen foods. Although some people have a specific preference for these items, most buyers would prefer buying more expensive alternatives if they had the income to do so.

Detailed explanation-2: -Definition: An inferior good is a type of good whose demand declines when income rises. In other words, demand of inferior goods is inversely related to the income of the consumer.

Detailed explanation-3: -Examples of inferior goods Food products in this category are less expensive than their normal goods counterparts, like fresh vegetables and fresh meat, and they tend to last longer, making them a more financially sound purchase. Specific examples might include: Canned vegetables. Instant noodles.

Detailed explanation-4: -Normal goods can include products such as name-brand products and personal vehicles, while inferior goods may include canned foods and public transit options.

Detailed explanation-5: -Inferior good: When with the increase in income of the consumer the demand for a good decrease and vice versa the good is called an inferior good. When income of the consumer increase demand for the inferior goods decreases. Due to which demand curve shifts leftward.