Meaning and types of Goods.

Meaning and Types of goods with examples.

The things which are used to satisfy human wants are called goods. In other words, all commodities having utility are called goods. For example: building machinery, television, car, book, pen etc. The ownership of goods can be transferred from one person to another. Goods can satisfy human wants and they have physical existence i.e material in nature. Goods can be stored for tomorrow and they can be touched and seen.

      Following are the types of goods:

1. Normal goods: Those goods which were consumed by large number of consumers are called normal goods. In other words, those goods whose demand increases along with the increase in income of people and vice versa are called normal goods. For example: vehicles, building furniture, TV, books etc.

2. Inferior goods: Those goods which have low quality are called inferior goods. In other words, those goods whose demand decreases along with increase in income of people and vice versa are called inferior goods. For example: cycle, kerosene stove, keypad mobile etc.

3. Giffen goods: Giffen goods are normally inferior goods but all inferior goods aren’t giffen goods. The concept of giffen goods was introduced by economist Sir. Robert Giffen. Those goods whose demand increases along with increase in price of goods and vice versa are called giffen goods. For example: bread made from maize, millet, cycle, etc.

4. Substitute goods: Those goods which are used one in place of other are called substitute goods. In other words, those goods which provide the same level of satisfaction are called substitute goods. For example: Colgate and close up, detol and lux, Samsung and mi etc.

5. Complementary goods: Those goods which are jointly demanded to fulfill single want are called complementary goods. In other words, those goods which are used together to fulfill single demand are called complementary goods. For example: pen and ink, car and petrol, tea and sugar etc.

6. Public goods: Those goods which are common to all are called public goods. They are mostly owned by the society or county. They have the features of non-excludability and non-rivalry. For example: roads, bridges, public parks etc.

7. Private goods: Those goods which are owned by private individuals and institutions are called private goods. They have the features of excludability and rivalry. For example: land, building, vehicles, furniture etc.