Some goods will initially increase in demand when you earn more but then eventually decline if you earn much more. For example, you may start taking more economic class flights as you earn more but then switch to business class as your income gets quite high.
Cheap plastic kitchenware
Dollar store items
No brand products
SummaryInferior goods have more expensive alternatives that tend to be preferred. An inferior good for a high income group can be a normal or luxury good for a lower income group. For example, vacations by economy class flight may be luxury for many but an inferior good for wealthy individuals.
|Overview: Inferior Good|
A good that is consumed less as income rises.
Staple foods such as potatoes or rice are an inferior good in many countries. As income rises, people tend to diversify their diet.