Inferior Good
Version 1.0.0 · Updated 2026-07-28
CORE DEFINITION
In economics, inferior goods are those goods the demand for which falls with increase in income of the consumer. So, there is an inverse relationship between income of the consumer and the demand for inferior goods. There are many examples of inferior goods, including subcompact economy cars, public transit, payday lending, second-hand clothes, and inexpensive food. The shift in consumer demand fo
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In economics, inferior goods are those goods the demand for which falls with increase in income of the consumer. So, there is an inverse relationship between income of the consumer and the demand for
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Goods whose demand decreases as income increases (negative income elasticity). As income rises, consumers switch to superior substitutes, reducing demand. This is not about quality but a relational attribute relative to income.
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Source support: Explicit
- en.wikipedia.orghttps://en.wikipedia.org/wiki/Inferior_goodverified
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