What is an inferior good

An inferior good is a good whose demand decreases when consumer income rises. This means that if a person suddenly has more money to spend (perhaps because they got a raise), they will start to buy less of these types of good.
A good example of inferior goods is items in the budget range at a supermarket. As incomes rise, people will buy less sainsbury's basics items and 'big-name' branded items.
An inferior good is the opposite to a normal good. A normal good is a good whose demand increases as consumer income increases. For example, organic pasta would be something that increases in demand as consumer income increases.

DH
Answered by Daisy H. Economics tutor

5390 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Does currency devaluation lead to an increase in export revenue?


Outline and evaluate the economic effects of a fall in the value of the dollar?


Explain which barriers to entry an new airline might face when entering the international flight market


Can you explain income elasticity of demand?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning