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John Spacey, November 08, 2015 updated on December 17, 2017
An inferior good is a product or service that you consume less when your income rises. A classic example is fast food. In many cases, sales of an inferior good can increase during a recession.|
Function | Economics | Definition | A good that is consumed less as income rises. | Example | Staple foods such as potatoes or rice are an inferior good in many countries. As income rises, people tend to diversify their diet. | Related Techniques | Superior GoodGiffen GoodVeblen Goods |
Goods
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