inferior product

a good or service for which the INCOME ELASTICITY OF DEMAND is negative; i.e. as income rises, buyers purchase less of the product. Consequently when the price of such a product falls, thereby effectively increasing consumers’ real income, then that price cut will have the INCOME EFFECT of tending to decrease the quantity demanded. This will tend to partially offset the SUBSTITUTION EFFECT of a price cut, which causes consumers to buy more of the product because it is now relatively cheaper. This applies to a very limited range of products. See PRICE EFFECT, NORMAL PRODUCT, INCOME CONSUMPTION CURVE, ENGEL'S LAW.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

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The store's decision to "dig into it" led them to realise that the mattress was in fact an inferior product. It was then, without a leg to stand on, that they began to address our concern and offered a refund.

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You'll still find butter or margarine in some of them, because I felt replacing it produced an inferior product and what's the point of making a super healthy dessert if you then don't eat it because you don't like the taste?

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American, the world's largest airline by distance flown, is also working with joint venture partner Qantas to help improve its service to combat the Australian market perception of US carriers having an inferior product. "It is important for us to get this right a it is the first time we've flown here since 1992 and we intend to do it really, really well," said Simon Dodd, the general manager of America's Australia and New Zealand operations, who is based at the Qantas head office at Mascot.

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The newspaper industry's trend for Web width reduction and lower basis weight has given both the consumer and advertiser an inferior product. Yet, as we have been doing this, we have also been struggling to retain their business.

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The rice was packed in bags of well-known brands to delude customers into buying the inferior product at the high price of the original good quality grain.

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