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Economics
Inferior Good
A product people buy less of when their income goes up because they switch to nicer versions.
Inferior goods have negative income elasticity. They're not bad quality; they're just what people choose when money is tight. The opposite is a normal good.It's like switching from instant ramen to real restaurant pasta once you start making more money — the ramen is the inferior good.
Real world: Bus rides are an inferior good — when people get higher-paying jobs they switch to Uber or buying a car instead.
💡 Inferior goods remind us that as America gets richer, some cheap products actually lose sales — that's normal and healthy for the economy.