Question

10 Examples of Inferior Goods

Answer 1

Inferior goods are those goods whose consumption decreases when income increases. Examples of inferior goods are different in different regions. However the common examples are the following

1) Public transportation : When income is low, people use public transportaion. But when income increases people prefer their own vehicles.

2) Bread or cereals : When income increases people will consume more nutritious food and reduce the consumption of bread or cereals.

3) Cheaper cars: With an increace in income people will prefer luxurious cars and reduce the consumption of cheaper cars

4) Economy class travel: When income increases, people demand business class travel than economy class travel

5) Small house: There will be an increase in demand for luxurious villas when income increases and the demand for small house will decrease

6) Hospitals with less facilities : when income increases, pople prefer multi-speciality hospitals than small hospitals

7) Cheaper Watches : When income increases people demand luxurious watches with modern features and the demand for cheaper watches will decrease.

8) No-name grocery store products: when income increase people will demand branded products and the demnad for no-name store products will decrease.

9) Tinned meat : When income rises people will increase the demand for fresh meats and decrease the demand for tinned meat

10) Cheaper branded dress: When income increase, people demand high quality branded dress and there will be a decrease in demnad for cheaper branded dresses.