An inferior good is one that is of lower quality than a substitute.

Name: An inferior good is one that is of lower quality than a substitute.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

This statement is incorrect. An inferior good is not necessarily of lower quality, but rather it is a good for which demand decreases as consumer income increases. A common example of an inferior good is generic or store-brand products that consumers may switch to when they have less disposable income.

An Inferior Good Is One That Is of Lower Quality