An example of an inferior good is the instant noodle. College students with lower incomes typically purchase and consume this type of food more than college graduates with higher incomes. It's an interesting class of goods because demand for normal goods typically increases when income increases. Inferior goods are the opposite. Their demand decreases when income increases.

Other examples of inferior goods include:

• Generic brands of staples such as cereals and peanut butter
• Public transportation
• McDonald's coffee
• Canned foods
• Frozen dinners