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Give the meaning of inferior good and explain the same with the help of an example. |
Answer» SOLUTION :(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. |
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