An inferior good means an increase in income causes a fall in demand. It is a good with a negative income elasticity of demand (YED). An example of an inferior good is Tesco value bread. When your income rises you buy less Tesco value bread and more high quality, organic bread.

Inferior Goods Examples. Let us consider the following inferior goods examples to get a deeper insight into the concept: Example #1. Kevin decided to take a vacation to Arizona and look for suitable lodging. He chose two hotels, A and B, with $100 and $250 for three days and two nights.

18/09/2015 · Examples of Inferior Goods. Cheaper cars - In the earlier years of most people's lives when income is lower, they often buy cheaper cars. They simply can't afford the luxury brands.

10/10/2019 · Inferior Goods. These are goods whose demand decreases when the consumers’ income increases. Examples could be second-hand clothes, rice, potatoes, etc. This is because their demand falls with the availability of higher quality alternatives. The word inferior, in this context, does not mean substandard goods.

Store-bought foods are very common examples of inferior goods. Some specific examples include canned and frozen fruits and vegetables. More groceries that can be inferior goods are canned meat, instant noodles and boxed foods, such as stuffing and mashed potatoes.

18/03/2021 · Related: What Are Intermediate Goods? (With Examples) Examples of inferior goods. Inferior goods are nearly always lower-cost substitutes for normal goods. A few of the most common categories of inferior goods include: Groceries. Groceries and food staples are some of the most common examples of inferior goods. Specific examples might include: