Question

The relationship between income and demand for inferior goods is_______

Answer 1

In the case of inferior goods income and demand are inversely related, which means that an increase in income leads to a decrease in demand and a decrease in income leads to an increase in demand. For example, necessities like bread and rice are often inferior goods.

Answer 2

The relationship between income and demand for inferior goods is inversely proportional.

What is the meaning of inferior goods?

• Inferior goods mean that when the income of a person increases then the value of inferior goods decreases
• When the income of a person decreases then the price of inferior goods increases
• For example, when a person buys rice of a certain brand if their income increases then they switch to another expensive brand
• Sometimes the quality of the product is equal in every brand