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Inferior goods are goods that we buy more of at lower income levels; they are characterized...

  1. Inferior goods are goods that we buy more of at lower income levels; they are characterized by rapidly falling marginal utility.
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Inferior goods are goods which are low in quality compare to its counterparts, having lower lifespan and most of the time cheaper in price as well. At lower income levels our budget to spend on particular goods are limited, so we may not afford better quality counterparts which may be costlier than inferior goods. As their lifespan is small and can be easily replaced compare to its counterparts which are good in quality, so its marginal utility also decreases rapidly. On the other hand better quality goods lasts long and functions properly even after long time so its marginal utility doesn't fall so rapidly.

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