Goods used for final Consumption are called Consumer Goods

Eg. Food, Home, Car

Goods used for production of other goods are called Producer Goods

Eg. Plants, Machinery, Factory

Goods which are consumed finally

Satisfy customer’s wants directly

The analysis used to study Consumed Goods is called Demand/ Revenue analysis

Can be used to produce Consumer goods or Producer goods themselves

ConsumerGood

Producer Good

According to Layman, goods perishable after use are called non-durable goods

Later new economics definition came ; non-durable goods are goods perishable after one use .Eg. Bread, Milk,

Purchased at regular intervals

Only current demand to be met corresponding to current conditions

Serviceability not generally required

Classified into perishable and non perishable goods

Perishable goods are lost after a period of time

Eg. Teaching Services, Doctor’s service, Medicines

Non-perishable goods are not lost after a period of time

Eg. Coal

Goods being used for a continued period of time. Eg.TV, refrigerator

It either satisfies new demand or replace old set.

Requires special facilities to use. Eg. Car needs Petrol Pump, Refrigerator needs Electricity.

Consumed by more than one person.Eg. TV, Radio

Serviceability is required. So segregation of new demand and service required

Demand analysis is heavily complex

A good whose demand increases when income increases and demand decreases when income decreases.

It’s price remains the same

Inferior goods are goods whose demand decreases as income increases.

It has negative elasticity of demand

Eg. A Man who had a recent hike in salary pay less on cheap dress.

Superior gods are goods whose demand increases as income increases

It has high positive elasticity of demand

In Ireland, the poor people used to consume more potatoes(inferior good) and less meat using their miniscule daily budget

During a famine when cost of potato was increased it was found that the consumption of potato has been increased

This phenomenon defied the law of demand as of then, and was called the Giffen paradox

In economics, a luxury good is a good for which demand increases more than proportionally as income rises.

It has a high elasticity of demand

Their quality, durability or performance that are remarkably superior to the comparable substitutes Eg. Gold ornaments

Needs good Brand Power

With time can assume status of normal goods

Goods which ascribe high status and value

Eg. Antique Collections, Limited Edition Goods

Bought by richest section of people

A good's demand is increased when the price of another good is decreased.

It has negative cross elasticity of demand

Eg. Pencil and Eraser consumption in case of a accounting firm.