Inferior good

From Wikipedia, the free encyclopedia
Jump to: navigation, search

In economics, an inferior good is a good that decreases in demand when the income of the consumer rises. People with little income might buy bread in the supermarket, but when their income increases, they buy their bread in the bakery instead. They did not buy from the bakery before, because the bread in the bakery is more expensive than the bread in the supermarket.

Goods where the demand rises with the income are called normal goods.