What are goods?

Goods are the products that are made to fulfill the market needs and can be sold by a seller to a buyer for some monetary value.

Types of goods

Related to income price

Related to

Related to income
INFERIOR GOODS

NORMAL GOODS SUPERIOR GOODS LUXURY GOODS

Related to Income
Inferior Goods:

An inferior good means an increase in income causes a fall in demand.

Inferior goods are those goods that have an inverse relationship with the consumers income
Example, of an inferior good is Tesco value bread. When your income rises you buy less Tesco value bread and more high quality, organic bread.

Examples of Inferior goods

Inter-city

bus service like BEST rice

Food- Ambemohar Black

and white T.V set- Onida B/W 15inch tailored simple shirt mobile phone- Nokia 3315

Clothing-

Outdated

Normal goods:
A normal

good is anything that you are willing and able to buy when your income increases or the price decreases. its income elasticity will be positive.

Thus,

Example would be movie tickets people see more movies when they have more disposable income, and cut back when they're on a budget.

Examples of Normal goods

Movie Two

tickets- Special Class @ Cinemax

wheeler- Kinetic Scooty DJ &C TravelMate 525TX

Clothing-

Laptop- Acer

Restaurant/

Food outlet- JumboKing

Superior Goods
Goods

that will tend to make up a larger proportion of consumption as income rises. such, they are an extreme form of normal good. good is a good/service that you are more likely to purchase as your expendable income increases. Example: A New Car

As

Superior

Examples of Superior goods

Movie Two

tickets- Red Lounge @ Cinemax

wheeler- Honda CBR250 Satya Paul collection SONY PSP- II

Clothing-

Entertainment-

Food

Outlet- Pizza Hut

Luxury Goods
Luxury

goods are those goods for which demand increases at a greater percentage with an increase in consumers income. Example, high Definition TVs would be luxury. When income rises, people spend a higher % of their income on the luxury good.

Examples of Luxury goods

Watches Four

Rolex premium collection

wheeler- Rolls Royce Clothing- Verace SONY Bravia HDL-

Designer

Entertainment-

55HX925
Tablet

PC- Samsung Galaxy tab

Back to type of goods

Related To Price

ORDINARY GOODS GIFFEN GOODS VEBLEN GOODS

Ordinary goods:
Goods for which quantity demanded increases as the price for the good drops, conversely, quantity demanded decreases as the price for the good increases.

Examples of Ordinary goods

Laptops Camera-

Compaq Sony Cyber-shot DSC-TX1 10.2

MP
Jewellery-

TBZ Mountain dew

Beverages-

Four

Wheeler- Maruti Suzuki Swift VXi

Giffen Goods
A Giffen

goods is one which people paradoxically consume more of as the price rises, violating the law of demand. In the Giffen good situation the income effect dominates, leading people to buy more of the good, even as its price rises.

Examples of Giffen goods

Rice-

HMT (people buy it for basic nutrition by and cutting short expense for fruits) in recession in inflation

Gold

Equities

Veblen Goods
Veblen

goods are those goods for which increased prices will increase quantity demanded. Example Some types of high-status goods, such as high-end wines, designer handbags and luxury cars, are Veblen goods.

Examples of Veblen goods

Watches Four

Rolex premium collection

wheeler- Rolls Royce Clothing- Verace iPhone

Designer

Mobiles- Apple

Pen-

Parker