What is an inferior good
An inferior good is a good whose demand decreases when consumer income rises. This means that if a person suddenly has more money to spend (perhaps because they got a raise), they will start to buy less of these types of good.
A good example of inferior goods is items in the budget range at a supermarket. As incomes rise, people will buy less sainsbury's basics items and 'big-name' branded items.
An inferior good is the opposite to a normal good. A normal good is a good whose demand increases as consumer income increases. For example, organic pasta would be something that increases in demand as consumer income increases.
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