Economists make a distinction between normal goods and inferior goods. If income
rises, the demand for most goods increases. These are normal goods. There are some
goods, however, for which demand will decrease as incomes rises. These are called
inferior goods. As our income rises, we consume less of these goods. For example,
as our income rises we buy less mince, and more steak. As our incomes rise, we tend to buy
better quality goods, and less ''budget'' brand goods.
