different types of goods
DESCRIPTION
A brief description of different types of goodsTRANSCRIPT
Abhi
Goods used for final Consumption are called Consumer Goods
Eg. Food, Home, Car Goods used for production of other goods
are called Producer GoodsEg. 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
ConsumerGood
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 timeEg. 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 valueEg. 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
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