What is Goods/meaning/concept/elaboration

The term means the physical, cultural or intellectual elements that correspond to the satisfaction of a certain need, in addition to referring especially to economic goods, that is, those goods that obtain a price in the market in the free game between supply and demand; thus, they have an appreciation in monetary terms. These can be classified in many ways on the basis of their characteristics.

According to their mobility, that is, their ability to move from one place to another, these are classified into movable and immovable. Thus, for example, a computer, a desk, a chair are considered movable goods insofar as they are easy to move around and can be sold elsewhere; rather, real estate is fixed in one place, such as a building.

According to their durability, these can be classified as durable and non-durable consumer goods. In the first case, these have consumption that extends over time, while in the second there are elements that end up in a single use, such as food.

In relation to function, these can be classified as consumer goods, when they meet a certain need immediately; intermediate goods, when their obtaining is derived from other means; and finally capital goods, that is, those that serve to create other goods and services, such as a textile machine.

According to their relationship with other goods considering their demand, these can be classified as complementary and substitutive. In the first case, these can be used together, such as cars and fuel; so when the consumption of one decreases, the consumption of the other decreases as well. In the case of substitute goods, when the demand for one good decreases, the demand for the other increases, as happens with the meat of different animals for food .

And finally, they can refer to goods classified according to income. Thus, we find the inferior goods that decrease when the individual’s income increases; normal goods, whose consumption makes the individual’s income increase; luxury goods, whose consumption increases as the individual’s income increases; and finally, goods, in which the increase in relation to income is little due to their condition of need.

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