ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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-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: -Normal goods can include products such as name-brand products and personal vehicles, while inferior goods may include canned foods and public transit options.