Definition of Inferior good:
Inferior goods—which are the opposite of normal goods—are anything a consumer would demand less of if they had a higher level of real income. They may also be associated with those who typically fall into a lower socio-economic class.
Not a substandard-good, but the term in economics for an item for which income elasticity of demand is less than zero. As the consumers become monetarily better off (earn higher incomes), the demand for such goods (such as basic food) falls because consumers can now afford higher priced substitutes.
An inferior good is an economic term that describes a good whose demand drops when people's incomes rise. This occurs when a good has more costly substitutes that see an increase in demand as incomes and the economy improve.
How to use Inferior good in a sentence?
- When incomes are low or the economy contracts, inferior goods become a more affordable substitute for a more expensive good.
- Inferior goods are the opposite of normal goods, whose demand increases even when incomes increase.
- An inferior good is one whose demand drops when people's incomes rise.
- The inferior good was not being sought after and its demand was decreasing to unprecedented levels which shocked our economist.
- I didnt want to sell the item because I felt it had a lot of faults and was an overall inferior good .
- If you are putting out an inferior good others will quickly realize it and will move on to another brand.
Meaning of Inferior good & Inferior good Definition