Question

Explain what you understand by 'inferior' goods and explain the same with the help of an example.

Answer 1

An inferior good refers to a good whose consumption decreases with an increase in income of the consumer, so there is a negative relationship
between consumer's income and demand for the good (given price is constant)

For example, coarse grain is an inferior good.

When income rises, demand curve for an inferior good shifts to the left. For example, demand curve for coarse grain shifts backward or leftward when consumer's income increases.