After graduating from college, you get a new job making more money. Suppose that you decide to buy more steak rather than hamburger. Would you consider hamburger?

A normal good.

A complementary good.

A neutral good.

An inferior good.

1 answer

In this scenario, since you are choosing to buy more steak instead of hamburger after getting a new job with a higher income, hamburger would be considered an inferior good.

Inferior goods are those for which demand decreases as consumer income rises. When you were on a lower income, you may have purchased more hamburgers; however, with increased income, you are opting for steak, which is typically seen as a higher-quality or more expensive option.