Inferior good: Difference between revisions
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==Definition== | ==Definition== | ||
An '''inferior good''' is a [[good]] for which there is a close substitute that is both better in quality and more expensive (The latter good is therefore ''superior''). For this reason, in a certain income range, the demand for an inferior good goes ''down'' when | An '''inferior good''' is a [[good]] for which there is a close substitute that is both better in quality and more expensive (The latter good is therefore ''superior''). For this reason, in a certain income range, the demand for an inferior good goes ''down'' when income increases. | ||
==Relation with other properties== | ==Relation with other properties== | ||
Latest revision as of 01:54, 25 July 2011
APPARENT COUNTEREXAMPLE: The topic of this article is an apparent (or possibly real) counterexample to a generally accepted law or principle of economics.
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Definition
An inferior good is a good for which there is a close substitute that is both better in quality and more expensive (The latter good is therefore superior). For this reason, in a certain income range, the demand for an inferior good goes down when income increases.