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An inferior good is something that people [[demand]] less of when their [[income]] increases. An example of an inferior [[good]] would be the purchase of generic (or store brand) products. As [[income]] increases, name-brand products (which are typically more expensive) can be purchased.
An '''inferior good''' is something that people [[demand]] less of when their [[income]] increases. An example of an inferior [[good]] would be the purchase of generic (or store brand) products. As [[income]] increases, name-brand products (which are typically more expensive) can be purchased.
Inferior goods are therefore said to have a negative income elasticity of demand.
Inferior goods are therefore said to have a negative income elasticity of demand.
[[category:economics]]
[[Category:Economics]]