Final answer:
An inferior good is a type of good where the quantity demanded falls as income rises and rises as income falls. People tend to buy less of inferior goods as their income increases and opt for more expensive alternatives.
Step-by-step explanation:
Inferior good is a type of good where the quantity demanded falls as income rises, and in which quantity demanded rises and income falls. In other words, as people's incomes increase, they tend to buy less of inferior goods and opt for more expensive alternatives that they prefer. For example, a higher-income household might choose to buy more steak and a new car instead of hamburgers and a used car.