An inferior good is one whose demand drops when people's incomes rise. When incomes are low or the economy contracts, inferior goods become a more affordable substitute for more expensive goods. ...

Behavioural economics applies psychological insights into human behaviour to explain the subconscious drivers of consumer purchase and intent which often contradict conventional economic principles.

Demand for inferior goods is commonly dictated by consumer behavior. Typically, demand for inferior goods is mainly driven by people with lower incomes or when there's a contraction in the economy ...