inferior good


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Related to inferior good: Giffen good, Income effect, Elasticity of demand, Income elasticity, Luxury good

inferior good

Any good that is consumed less as average incomes in an economy rise.
References in periodicals archive ?
Speaking to Gulf News, expert economist Professor Cedwin Fernandes said rice is considered an inferior good from an income elasticity perspective, with studies suggesting that as incomes increase, rice consumption falls as people can now afford to switch to high-value products such as meat, dairy products, fruits, and vegetables.
Buying a Precious Good at the Price of an Inferior Good
Note: An inferior good is a good that has the property that when a person's income increases the demand for the inferior good falls; and vice versa.
Market work time is an inferior good for both husbands and wives, meaning market work time decreases when non-labor income rises.
Any rational consumer will go for a superior quality, cheaper good rather than high priced, inferior good.
1] iff Good 1 is a necessity and/or an inferior good and Good 2 is a luxury.
It is assumed that neither the importable good nor the exportable good is an inferior good.
Following classical utility theory, the quantity purchased of an inferior good is inversely related to the real income of the agent.
It is also straightforward to show that potatoes are an inferior good while meat is a normal good.
Because the Chinese are importing directly from home, they can also afford to bring in junk," he said, accusing them of importing inferior goods -- which the Chinese deny.

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