Inferior good facts for kids

In economics, an inferior good is a good that decreases in demand when the income of the consumer rises. People with little income might buy bread in the supermarket, but when their income increases, they buy their bread in the bakery instead. They did not buy from the bakery before, because the bread in the bakery is more expensive than the bread in the supermarket.

Goods where the demand rises with the income are called normal goods.

Images for kids

• 

  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.

• 

  An item such as non-branded grocery products are common inferior goods. There is no set criteria of what constitutes an inferior good, but economists refer to an inferior good as any item preferred less when disposable consumer income increases.

See also

In Spanish: Bien inferior para niños