An inferior good is a good that
A) is of poor quality.
B) is purchased only as a last resort.
C) has a negative income elasticity.
D) has less value than a superior good.

Question

Quizplus · Accepted Answer

Inferior goods are characterized by having a negative income elasticity of demand, meaning that as consumers' income increases, their demand for these goods decreases. This is not necessarily related to the quality or value of the good compared to others.

An Inferior Good Is a Good That