In consumer theory, an inferior good is a good that decreases in demand when the consumers income falls, unlike normal goods, for which the opposite is observed. Inferiority, in this sense, is an observable fact relating to affordability rather than a statement about the quality of the good. As a rule, surfeit is easily achieved with such goods, and as more costly substitutes that offer more pleasure or at least variety become available, the use of the inferior goods diminishes. Consumer theory is a theory of economics. ... In economics, normal goods are any goods for which demand increases when income increases. ...

Inter-city bus service is an example of an inferior good. This form of transportation is cheaper than air or rail travel, but is more time-consuming. When money is constricted, traveling by bus becomes more palatable, but when money is more abundant than time, more rapid transport is preferred. Inexpensive foods like hamburger, mass-market beer, frozen dinners, and canned goods are additional examples of inferior goods. As incomes rise, one tends to purchase more expensive foods. Likewise, goods and services used by poor people for which richer people have alternatives exemplify inferior goods. As a rule, used and obsolete goods (but not antiques) marketed to persons of low income as closeouts are inferior goods at the time even if they had earlier been normal goods or even luxury goods. Autobus redirects here. ... A Silk Air Airbus A320-200 in the air. ... railroads redirects here. ... For the province in the Philippines, see Antique (province) and for the band, see Antique (duo). ...

Some inferior goods are so consistent that they can be seen as economic indicators. One such is instant noodles, where an early 2005 increase in the Thai "Mama Noodles Index" (the number of the popular Mama-brand instant noodles sold in that country) was seen as a sign of weakness after about ten years of stability. Cooked instant noodle served with chicken Instant noodles are dried precooked noodles fused with oil, usually eaten after being cooked or soaked in boiling water for 3 to 5 minutes. ...

Others are very inconsistent across geographic regions or cultures. The potato, for example, generally conforms to the demand function of an inferior good in the Andean region where the crop originated. People of higher incomes and/or those who have migrated to coastal areas are more likely to prefer other staples such as rice or wheat products as they can afford them. However, throughout the most densely populated regions of Asia (e.g. China [1], India [2], and Bangladesh [3]), potatoes (often in the form of French fries) are an expensive form of calories most in demand by people with relatively high incomes living in cities. For other uses, see Potato (disambiguation). ... French fried potatoes, commonly known as French fries or fries (North America) or chips (United Kingdom, Republic of Ireland and Commonwealth) are pieces of potato that have been chopped into batons and deep fried. ...

Depending on consumer or market indifference curves, the amount of a good bought can either increase, decrease, or stay the same when income increases. In the diagram below, good Y is a normal good since the amount purchased increases from Y1 to Y2 as the budget constraint shifts from BC1 to the higher income BC2. Good X is an inferior good since the amount bought decreases from X1 to X2 as income increases. In microeconomics, an indifference curve is a graph showing combinations of two goods to which an economic agent (such as a consumer or firm) is indifferent, that is, it has no preference for one combination over the other. ...

example of inferior good. ...

Giffen goods

Main article: Giffen good

A special type of inferior good may exist known as the Giffen good, which would disobey the "law of demand". This would have to be a good that is such a large proportion of a person or market's consumption that the income effect of a price increase would produce, effectively, more demand. The observed demand curve would slope upward, indicating positive elasticity. A Giffen good is a product for which a rise in price of this product makes people buy even more of the product. ... A Giffen good is a product for which a rise in price of this product makes people buy even more of the product. ... Consumer theory relates preferences, indifference curves and budget constraints to consumer demand curves. ... In economics, the demand curve can be defined as the graph depicting the relationship between the price of a certain commodity, and the amount of it that consumers are willing and able to purchase at that given price. ... In economics and business studies, the price elasticity of demand (PED) is an elasticity that measures the nature and degree of the relationship between changes in quantity demanded of a good and changes in its price. ...