What is inferior goods ?
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Posted by Vidushi Pal 6 years, 10 months ago
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Yogita Ingle 6 years, 10 months ago
An inferior good is a type of good whose demand declines when income rises. In other words, demand of inferior goods is inversely related to the income of the consumer.
For example, there are two commodities in the economy -- wheat flour and jowar flour -- and consumers are consuming both. Presently both commodities face a downward sloping graph, i.e. the higher the price the lesser will be the demand and vice versa. If the income of consumer rises, then he would be more inclined towards wheat flour, which is a little costly than jowar flour.
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