Different types of goods
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Different types of goods

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A brief description of different types of goods

A brief description of different types of goods

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Different types of goods Different types of goods Presentation Transcript

  • Abhi
    • Goods used for final Consumption are called Consumer Goods
    • Eg. Food, Home, Car
    • Goods used for production of other goods are called Producer Goods
    • Eg. Plants, Machinery, Factory
    • Goods which are consumed finally
    • Satisfy customer’s wants directly
    • The analysis used to study Consumed Goods is called Demand/ Revenue analysis
    • Can be used to produce Consumer goods or Producer goods themselves
  • Consumer Good Producer Good
    • According to Layman, goods perishable after use are called non-durable goods
    • Later new economics definition came ; non-durable goods are goods perishable after one use .Eg. Bread, Milk,
    • Purchased at regular intervals
    • Only current demand to be met corresponding to current conditions
    • Serviceability not generally required
    • Classified into perishable and non perishable goods
    • Perishable goods are lost after a period of time
    • Eg. Teaching Services, Doctor’s service, Medicines
    • Non-perishable goods are not lost after a period of time
    • Eg. Coal
    • Goods being used for a continued period of time. Eg.TV, refrigerator
    • It either satisfies new demand or replace old set.
    • Requires special facilities to use. Eg. Car needs Petrol Pump, Refrigerator needs Electricity.
    • Consumed by more than one person.Eg. TV, Radio
    • Serviceability is required. So segregation of new demand and service required
    • Demand analysis is heavily complex
    • A good whose demand increases when income increases and demand decreases when income decreases.
    • It’s price remains the same
    • Inferior goods are goods whose demand decreases as income increases.
    • It has negative elasticity of demand
    • Eg. A Man who had a recent hike in salary pay less on cheap dress.
    • Superior gods are goods whose demand increases as income increases
    • It has high positive elasticity of demand
    • In Ireland, the poor people used to consume more potatoes(inferior good) and less meat using their miniscule daily budget
    • During a famine when cost of potato was increased it was found that the consumption of potato has been increased
    • This phenomenon defied the law of demand as of then, and was called the Giffen paradox
  •  
    • In economics, a luxury good is a good for which demand increases more than proportionally as income rises.
    • It has a high elasticity of demand
    • Their quality, durability or performance that are remarkably superior to the comparable substitutes Eg. Gold ornaments
    • Needs good Brand Power
    • With time can assume status of normal goods
    • Goods which ascribe high status and value
    • Eg. Antique Collections, Limited Edition Goods
    • Bought by richest section of people
    • A good's demand is increased when the price of another good is decreased.
    • It has negative cross elasticity of demand
    • Eg. Pencil and Eraser consumption in case of a accounting firm.
    • Managerial Economics, GS Gupta, Tata-McGraw Hill, 2007
    • Principles of Economics, DN Dwivedi, Prentice Hall India, 2004
    • Managerial Economics, R L Varshney and KL Maheshwari, Sultan Chand & Sons, 2005
    • Modern Economic Theory, KK Dewett, S. Chand & Company Ltd, 2005
    • Managerial Economics, Dr. MS Subrahmanian, Ramesh Publications, 1995
    • http://www.moneyterm.co.uk