what are inferior goods?
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An inferior good is a type of good for which demand declines as the level of income or real GDP in the economy increases. ... An inferior good is the opposite of a normal good, which experiences an increase in demand along with increases in the income level.
Example
As a consumer's income increases the demand of the cheap cars will decrease, while demand of costly cars will increase, so cheap cars are inferior goods. Inter-city bus service is also an example of an inferior good. This form of transportation is cheaper than air or rail travel, but is more time-consuming.
Example
As a consumer's income increases the demand of the cheap cars will decrease, while demand of costly cars will increase, so cheap cars are inferior goods. Inter-city bus service is also an example of an inferior good. This form of transportation is cheaper than air or rail travel, but is more time-consuming.
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