Normal Goods –
A normal good is a good whose demand increases with increase in income, and demand decreases when income decreases. It has a direct relationship with income. It has a positive income elasticity of demand. e.g. – Whole wheat, organic pasta, noodles, nice shoes, name-brand clothing etc
Inferior Goods –
An inferior good is a good whose demand decreases when consumer income increases and demand increases when consumer income decreases. It has a negative or inverse relationship with income. e.g. – Old or used car – consumers will generally prefer old or used cars when their income is limited.
Luxury Goods or Superior Goods –
A luxury good is a good for which demand increases more than proportionally as income rises, so that expenditures on the good become a greater proportion of overall spending. The demand for these products fluctuates directly with the level of consumer income. e.g. – Expensive cars, Expensive Smartphones etc
Giffen Goods –
A Giffen good is a good that people consume more of as the price rises and vice versa. OR
A Giffen good is a good whose demand increases as the income of the household decreases and vice versa.
For a Giffen good, the income effect must be negative, that is a fall in income increases demand and vice versa.
e.g. – rice, millet etc
All Giffen goods are inferior goods but not all inferior goods are Giffen goods.
Veblen Goods –
A Veblen good is a good for which demand increases as the price increases, because of its exclusive nature and appeal as a status symbol. e.g. – expensive Swiss watches, Diamonds, supercars etc
Complementary Goods –
A complementary good is a good whose demand increases with the increase of its complement. e.g. – Car and Petrol, Printer and Ink Cartridges etc
Supplementary Goods –
A supplementary good is a good whose demand increases when the price of its supplementary good increases. e.g. – Tea and coffee, when the price of one increases, demand for other increases.
Public Goods –
Public goods are those goods which one can’t buy with money. All people can consume these goods equally, and no one can stop others from using these goods. This type of goods is considered non-rival as well as non-excludable. e.g. – air, roads, sunlight, national defense etc
Private Goods –
Private goods are those goods which one can buy with money.These goods are available to everyone but only the person who paid the price can use it, Owner of the good can prevent others to use it. It is also available in the limited quantity. This type of goods have have the characteristics of rivalry and excludability. e.g. –
Merit Goods –
Merit goods are those goods which people might not find necessary to buy, but the government views them as essential goods for people. OR
Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidized or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service.
Merit goods have external benefits or positive externalities to society when they are produced and consumed. Unlike public goods though, they are both rivalrous and excludable in nature.
e.g. – public hospitals, parks, education etc
Demerit Goods –
A Demerit good is a good or service whose consumption is considered unhealthy, degrading, or otherwise socially undesirable due to the perceived negative effects on the consumers themselves”. It is over-consumed if left to market forces.
Demerit goods have external loss or negative externalities to society when they are produced and consumed.
e.g. – tobacco, consuming alcoholic beverages, gambling etc
Tangible Goods –
Tangible goods are physical products which can be touched. e.g. – cars, computers, telephones, food etc.
Intangible Goods –
Intangible goods are those goods which are not sold in physical form. These things could be services or virtual product that might have a great need in the virtual world and but does not have a physical structure. e.g. – experiences, financial services, advice, knowledge, skills, software, culture, business services, consultation etc.
Intermediate Goods –
An intermediate good is a good used to produce a final good by the producers as an input. e.g, – wood, steel, sugar etc
Final Goods –
Final goods are those goods which are used either for consumption or for investment. Final goods are consumed directly without any further process or with a very little process. OR
A final good is a good produced for the direct use by end consumers. Final goods are also referred to as consumer goods.
e.g. – car, ready to eat food, smartphone etc
Durable Goods –
Durable goods are generally defined as those goods whose expected lifetime is greater than three years. e.g. – car, electronics, furniture, tools etc
Semi Durable Goods –
Semi Durable goods are those goods which do not last very long time and will be destructed after the repeated use. e.g. – apparels, shoes, preserved eatables etc
Non Durable Goods –
Non durable goods are which can be consumed or usable for a short period of time because they wear out or become useless. e.g. – vegetables, etc
Consumer Goods –
A consumer good is a good that is used by the consumer to satisfy current wants or needs, rather than to produce another good. e.g. – food, household items, entertainment, clothing etc
Capital Goods –
A capital good is a good that is used in the production of goods or services. e.g. – machines, equipment, buildings etc.