Give the meaning of inferior good and explain the same with the help of an example.

Explanation

(i) A good is called .inferior goods. when its demand falls with a rise in the income of a consumer and vice- versa.
(ii) For example, Jowar or Bajra for a poor person.
(iii) A good is inferior in a relative terms. It means, a good is inferior or normal is determined by the income level of a consumer.
(iv) When a consumer moves to higher income, he/she may consider some goods below their income status, and treats them as inferior.