Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / The term inferior goods refers to what kind of goods?

The term inferior goods refers to what kind of goods?

Economics

The term inferior goods refers to what kind of goods?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Inferior goods refer to goods, and even services, that are consumed or availed less by the market in the event that people's income increases. Generally, there exists an increased consumption of almost all goods and services once a person receives an increase in salary. However, goods like hand-me-downs, thrift items, fake or imitation goods and canned foods are consumed less. That's precisely why these are called 'inferior' goods--because people see them as second-class. For instance, the moment people earn more money, they usually aim for the brand-name chips (not the generic brand), or they prefer the first-use items over hand-me-downs.