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Types of Goods

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DEFINITION OF GOODS:
A good is a product that can be used to satisfy some desire or need. More narrowly but commonly, a good is a tangible physical product that can be contrasted with a service which is intangible. As such, it is capable of being delivered to a purchaser and involves the transfer of ownership from seller to customer.

TYPES OF GOODS:

Inferior Good:
Goods for which demand decreases as consumer income rises. Example: Inter-city bus service and inexpensive foods such as hamburger, and frozen dinners, cheaper cars, second hand/used television, clothing from a charity store. Examples-

1) A Kroger brand of imitation juice beverage in gallon milk jugs.

2) "Value-Time" Ice Cream: Ice cream sold in 2.5 gallon plastic pails at grocery stores, with an emphasis on value and quantity as opposed to quality or advertising.

3) Cosmic brownies: Low cost cakes resembling small brownies manufactured by the Little Debbies company. Tesco value bread. When your income rises you buy less Tesco value bread and more high quality, organic bread.

4) Tahitian Treat: A low-cost carbonated fruit punch beverage.

5) Thirst Rockers

Normal Good:
Goods for which demand increases as consumer income rises and falls when income decreases but price remains constant. Most goods are normal goods, hence the name “normal.” food,water,clothing, salt, match box, vegetables.

Superior Good:
Goods that will tend to make up a larger proportion of consumption as income rises. As such, they are an extreme form of normal good. Thus, a superior good’s income elasticity” will be both positive and greater than 1. A superior good might be a luxury good that is not purchased at all below a certain level of income, such as a luxury car, paintings. examples- 1) Smoked salmon

2) Caviar, sometimes called black caviar, is a luxury delicacy,...

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