ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Key Takeaways. An inferior good is one whose demand drops when people’s incomes rise. When incomes are low or the economy contracts, inferior goods become a more affordable substitute for a more expensive good.

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: -Inferior goods are goods for which demand actually declines as consumers’ real incomes rise, or rises as incomes fall. This occurs when a good has more costly substitutes that see an increase in demand as the economy improves.

Detailed explanation-5: -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.