Inferior Good

Home » CMA Glossary Term » Accounting Concepts and Principles » Inferior Good

An “inferior good” is a type of product whose demand decreases as consumer income rises, contrary to normal goods. When income levels fall, demand for inferior goods typically increases, as consumers opt for more cost-effective alternatives. This concept is crucial in understanding consumer behavior and market dynamics. The inferior good definition is essential for analyzing economic trends and consumer spending patterns.

CMA Prep Course

CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.