A type of good where demand for the good decreases as INCOME rises e.g. own value brand products.
Below is a diagram to illustrate the basic demand curve structure for an inferior good. If the level of real income increases this causes an inward shift of the demand curve as consumers disposable income increases they switch to better quality products that they derive a greater level of utility from. Vice versa if the level of real income decreases this causes an outward shift of the demand curve as consumers can no longer afford normal goods and therefore they switch to cheaper alternatives which are of inferior quality.
