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Question -

What do you mean by an ‘inferior good’? Give some examples. 



Answer -

  1. A good is called ‘inferior goods’ when its demand falls with a rise in the income of a consumer and vice- versa.
  2. For example, Jowar or Bajra for a poor person.
  3. A good is inferior in a relative terms. It means, a good is inferior or normal is determined by the income level of a consumer.
  4. When a consumer moves to higher income, he/she may consider some goods below their income status, and treats them as inferior.

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