Examples of Inferior goods

In economics, a good is defined as inferior if people consume less of it when their incomes rise.

If a family belongs to a lower economic level, we can ususally tell by their consumption habits. Their clothes, their choice of foods, what they buy at the grocery store reflect their very limited budget.

Now, if the father and the mother both get great jobs, and their incomes increase significantly, some of the products they would replace for "better" ones are typically inferior goods.

Companies that manufacture "inferior goods" tend to see their business do really well when the economy is in a recession. Mega-stores like Walmart and K-mart can be "inferior good stores" in the sense that people frequent them more often when their incomes are lower.

Cheaper cars are also an example. Even within the same brand, a dealership may see their basic, no frills cheap automovile as an inferior good. When the economy rebounds, people migrate to the dealership's "better" brands.

Instant Ramen noodles, bologna, hamburger, mass-market beer, hamburger-helper, mac-and-cheese, frozen dinners, and some canned goods are typical instances of "inferior goods". As people's fotunes move up, they abandon those articles in favor of more "upscale" equivalents.

Note: these classifications are never exact. They can change regionally or by cultures.