Inferior good
In economics, inferior goods are those goods the demand for which falls with increase in income of the consumer. So, there is an inverse relationship between income of the consumer and the demand for inferior goods. There are many examples of inferior goods, including cheap cars, public transit options, payday lending, and inexpensive food. The shift in consumer demand for an inferior good can be explained by two natural economic phenomena: the substitution effect and the income effect.
Inferior good - Wikipedia Jump to content From Wikipedia, the free encyclopedia Concept in economics This article needs more citations . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed . Find sources: "Inferior good" – news · newspapers · books · scholar · JSTOR ( October 2009 ) ( Learn how and when to remove this message ) Inter-city bus services are more affordable than air travel, but the trips are much longer. As a result, inter-city bus services are an inferior good which people tend to use less as their income ri
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