Give the meaning of 'inferior good' and explain the same with the help of an example

CBSE Class 12 CBSE Class 12 Economics
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1

Give the meaning of ‘inferior good’ and explain the same with the help of an example.

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What is an inferior good? In what manner is the demand curve of such a good affected when income of the consumer increases? Use diagram.

2

Inferior goods These are the goods for which the demand is inversely related to consumers’ income. Other things remaining constant, demand for these goods decreases in response to increase in income and vice-versa, e.g. coarse cereals, toned milk, etc.