Blog
Inferior Goods

27th March 2008
Jim blogged today on his Business Studies blog about attempts by Pontins to revamp their Uk holiday camp business. Instinctively I thought that I could use this as an example of an inferior good - a product with a negative income elasticity of demand. What other examples do colleagues use for inferior goods in their teaching? Off the top of my head:
White own label bread Economy baked beans Tinned meat Bus transport Cigarettes
I am taking the aggregate view here - because income elasticity of demand will vary from person to person depending partially on our own individual preferences.
Anymore examples?
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