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Inferior goods have negative income elasticities, such that when income is higher you actually consume less...

Inferior goods have negative income elasticities, such that when income is higher you actually consume less of the good. Is this a violation of the “more is better” property? Why or why not?

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Answer #1

Ans. No , it's not a violation of more is better property because this property is applicable in the case of normal and luxurious goods and is not relatable to income levels. Inferior good is an exemption of law of demand and hence when the income rises , people would demand less and less of inferior goods but more and more of normal goods ( where ' more is better ' property stands true ) .

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