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Economics - Types of Goods

The document discusses different types of goods in economics including: 1. Substitute goods which have a positive cross elasticity of demand and complementary goods which have a negative cross elasticity of demand. 2. Goods can be classified according to income as inferior goods, normal goods, or luxury goods depending on how demand changes with increasing income. 3. Goods can also be classified according to prices as Giffen goods or Veblen goods which are exceptions to normal demand behavior in response to price changes.

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2K views

Economics - Types of Goods

The document discusses different types of goods in economics including: 1. Substitute goods which have a positive cross elasticity of demand and complementary goods which have a negative cross elasticity of demand. 2. Goods can be classified according to income as inferior goods, normal goods, or luxury goods depending on how demand changes with increasing income. 3. Goods can also be classified according to prices as Giffen goods or Veblen goods which are exceptions to normal demand behavior in response to price changes.

Uploaded by

jayaiya
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Economics

Goods
In

economics, a good is a product that can be used to satisfy some desire or need.
A good

is a tangible physical product that can be contrasted with a service which is intangible.

Types of Goods
1.

2.
3.

Substitute Goods. Complimentary Goods Essential Consumer Goods

According to Income 1. Inferior Good 2. Normal Good 3. Luxury Good

According to Prices
1.

2.

Giffen Goods Veblen Goods

Inferior Good
An

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

Example:-

TIGGER

Basmati Rice

Normal Good
This means an increase in income causes an increase in demand. Example:-

Luxury Good
A luxury good means an increase in income causes a bigger % increase in demand.

Substitute Goods :

A substitute good, in contrast to a complementary good, is a good with a positive cross elasticity of demand. This means a good's demand is increased when the price of another good is increased.

Example:-

Complementary Goods:A complementary good, in contrast to a substitute good, is a good with a negative cross elasticity of demand. This means a good's demand is increased when the price of another good is decreased.

Essential consumer goods :Essential consumer goods or services" means goods or services that Are necessary for the health, safety or welfare of consumers.
Example:-

MANAGERIAL ECONOMICS
Project :- Types of Goods

By: -

Name Hemant Pandey

Roll Div 37 B

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