"...a good that decreases in demand when consumer income rises, unlike normal goods, for which the opposite is observed."
Get it? The more your income, the less you want this good -- in absolute terms, not just proportional terms.
So which goods are inferior, in Australia?
The RBA has worked it out, using the ABS household expenditure and income surveys:
"Less than 1 per cent of total spending was on goods
and services that were estimated to be inferior
goods in 2009/10. Given that many of these have
elasticities only slightly less than zero, it is difficult to
be definitive.
However, based on the data from the
2003/04 and 2009/10 HES, examples of goods which
may be classified as inferior goods are powdered
milk, TV rental and tobacco other than cigarettes."
I can think of others: Cask wine, International Roast.
Are there others?
Insights From the Household Expenditure Survey
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