Question

Coarse cereal is a type of ______.

Options

• superior good

• inferior good

• Giffen good

• normal good

Answer 1

Coarse cereal is a type of inferior good.

Explanation:

Coarse cereals, such as maize and jowar, are generally inferior goods: demand for them tends to fall as consumers’ incomes rise and they switch to superior cereals. Some may display Giffen behaviour in particular circumstances, but they are classified generally as inferior goods.