Whenever you ask a person about the kind of goods and services he would like to buy, one of the factors that he will mention is the quality. Undoubtedly, it is quite general among all the customers worldwide that they want to purchase branded high-quality goods from shoes to lipsticks and from furniture to cars. However, not everyone can afford to buy branded goods, which is why easily affordable inferior alternatives are looked for. Working out your inferior good homework answers will help you understand this situation clearly.
Inferior goods are the ones available to general folks
Â If you conduct a survey on the type of goods that people in your city want to buy, you will find a common result from almost ninety-eight percent of them, which is the desire to have possessions of top notch quality. At the same time, to buy high-quality goods is not everyone’s cup of tea, due to which people look out for relatively affordable inferior goods.
Inferior goods are the goods and services that are available at affordable prices and therefore, can be bought by even commoners. Examples may include public transportation, off brand grocery and supermarket brand goods like cereals, bread, etc.
Inferior goods have nothing to do with quality
Students often confuse inferior goods to be the ones having inferior quality. However, it is not necessary that they would be inferior quality goods and services only. Their costlier alternatives obviously stand in the market, but this difference in prices has no obligatory relation with quality. Inferior goods may also have a good quality. Thus, to confuse the word ‘inferior’ in inferior good with cheap quality will be incorrect.
Students who are required to write inferior good homework answers should be aware of this fact, otherwise, they may lose marks because of such loopholes in their knowledge of the subject. There may be instances when inferior good has cheaper quality than normal goods, but the same is not an obligation.
Inferior goods increase in demand in a developing economy
A developing economy here can be understood as the one whereby gross domestic price or GDP or income of the customers is undergoing an increment. In such an economy, when
income or GDP rises, people who had to do with relatively cheap inferior goods become able to purchase more desirable normal and luxury counterparts.
Exactly converse of the above situation occurs in a declining economy, whereby GDP of citizens is undergoing a decline, and therefore, the more convenient and affordable inferior goods are sought after.
Knowledge of inferior goods help businessmen make strategies
Knowledge of the inferior goods and services proves to be substantial for a businessman as it helps him in making wise strategies regarding the working of his business. Because the demand for inferior goods increases when there is a situation of economic crisis or declining GDP, a company may devise strategies to produce inferior goods in greater number and hence, earn profits.
Similarly, when the situation is opposite, the company may produce normal goods in larger number based on their high demand in the marketplace. Students need to have a deep insight on such situations to write their inferior good homework answers in an impressive way. They can also take help of various online homework help services now available on web to make their answers even more informative and appealing.
Knowledge of normal and luxury goods is also important
Students also need to know the classification of goods done on the basis of their price and affordability to people. The classification categorizes various goods and services into three types, namely, inferior, normal and luxury goods and services. We have discussed inferior goods. Normal and luxury ones are yet to be discussed.
In general, normal goods are the ones that have high values and face an increased demand when GDP of a country or income of customer rises. Similarly, luxury goods are the ones that are available at considerably high prices such as luxury cars.
This is just a brief overview. For a more detailed and point to point content on the same, you can subscribe to homework help services providing contents written by experts.
Consumer behavior plays an important part in inferior good homework answers
Consumer behavior or customer behavior can be understood as the interest of customers towards buying or not buying a particular product. This is an important aspect to study under the topic ‘inferior goods’ which will be useful for writing your inferior good homework answers as the observation of consumer behavior forms the basis of assigning a status to and thereby categorizing any good or service.
Concept of consumer behavior can be understood more clearly by thinking upon a simple example. When the income of a customer is low, he prefers a cheap product because it comes at a price he can afford. On the other hand, if his income increases, his budget increases consequently and facilitates to buy more expensive item of the same type.
Examples can always guide you more comprehensively
Be it any process or product; examples are something that is important to understand a concept more precisely. In the case of inferior goods, we can take an example of McDonald’s and Starbucks’ coffee. The one in McDonald’s is cheap while the other at Starbucks is pricey. When one has a high income, he can easily afford the more expensive Starbucks coffee. However, if the case is reverse of this, going to Starbucks may not sound appropriate to his budget. Therefore, he would switch on to less expensive McDonald’s coffee.
To get a thorough understanding of the concept, one must realize the importance of the process and not merely study the various procedures in it. This can be of a lot of help to you. To write your inferior good homework answers flawlessly, you must also realize the significance of your task and how it will help you in the long run. Inferior goods ultimately tell about the economic status of a country at any time. Seeking help of online homework help services can be a beneficial option for you.