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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 White Castle for their cheap hamburgers. As one's [[income]] increases, he can afford McDonalds!
An inferior good is something that people [[demand]] less of when their [[income]] increases. An example of an inferior [[good]] would be White Castle for their cheap hamburgers. As one's [[income]] increases, he can afford McDonalds!
Inferior goods are therefore said to have a negative income elasticity of demand.
[[category:economics]]
[[category:economics]]