what is inferior goods

8 months ago 24
Nature

In economics, an inferior good is a type of good whose demand decreases when consumer income rises. This is unlike normal goods, for which the opposite is observed. Inferior goods are not necessarily of inferior quality, but rather are affordable substitutes for more expensive goods. Examples of inferior goods include mass-market beer, frozen dinners, and canned goods. As incomes rise, people tend to purchase more expensive, appealing, or nutritious foods, and the use of inferior goods diminishes.