Cheap plastic kitchenware | Discount airlines |
Discounted items | Dollar store items |
Fast food | Frozen meals |
Inexpensive restaurants | Instant noodles |
No brand products | Off-brand products |
Public transportation | Used goods |
Summary
Inferior 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 | ||
Function | ||
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 | ||
