Quick Definition

An inferior good is a type of product whose demand decreases as the income of consumers increases, opposite to normal goods.

Examples

• 1As people's income increases, they tend to buy fewer instant noodles and more fresh or organic foods.
• 2During economic downturns, consumers might opt for public transportation over maintaining a personal vehicle.
• 3Shoppers may switch from generic brand products to premium brands as their financial situation improves.

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