The goods for which demand increases proportionally less

Solution

An inferior good is a good whose quantity demanded decreases when consumer income rises (or quantity demanded rises when consumer income decreases). In economics, a luxury good (or upmarket good) is a good for which demand increases more than proportionally as income rises Necessity Goods are those goods for which demand increases proportionally less than income Anormal goodis agoodor service that experiences an increase in quantity demanded as the real income of an individual or economy rises. Anormal goodis defined as having an incomeelasticityof demand coefficient that is positive but less than one. Agoodcan also be classified as a luxurygoodor inferiorgood.