Question

Goods for which demand move in the opposite direction of the income of the consumer are called

Answer 1

These goods are called inferior goods. When income of a consumer rises, the demand for inferior goods falls. It has negative income elasticity.

For example: If we are purchasing toned milk with initial level of income. Now, suppose that my income rises, then I will shift to full-cream milk and would not purchase toned milk. So, an increase in my income has reduced the demand for toned good. The toned good in this example is an inferior good.