Superior good

Superior good,

Definition of Superior good:

  1. Similar to a normal good, it is an item for which demand (consumption) increases as income increases. Unlike a normal good, its income elasticity of demand is always above one. Superior goods are always expensive, and often are relatively scarce or harder to come by. Superior goods are purchased in place of a lesser quality item, therefore making up a larger proportion of consumption as income increases. A superior good might be a luxury automobile, while a normal good would be an average automobile.

Meaning of Superior good & Superior good Definition