In economics goods are those which satisfy the needs and wants of consumer, goods can be anything ranging from small pin to big aircraft, and that is the reason why it is important to classify goods. Given below are the various types of goods which are there –
- Luxury Good – They are those goods where an increase in income leads to bigger increase in demand for such goods. So for example if your income rises from $100000 o $150000 than chances are that you would end up spending majority of that $50000 increase in your income towards consumption of luxury goods like LCD television, iPods, mobiles etc…
- Free Goods – These goods are those which are freely available like air, water (Though water cannot be said to be completely free).
- Public goods – They are those goods which are used by all such as parks, roads and so on, public goods are often provided by the government to its people.
- Private goods – They are opposite of public goods which means they cannot be used by all and one has to pay for it in order to consume private goods.
- Substitute goods – They are those goods which can be used in place of other goods by the consumer.
- Complementary goods – They are those goods which are used together and therefore the demand for such goods is interdependent. For detail explanation on substitute and complementary goods one can see the following article.
- Normal Goods – They are those goods whose demand increases when the income of the consumer increases and vice versa.
- Inferior Goods – They are those goods whose demand increases when the income of the consumer decreases. For detail explanation on normal and inferior goods one can see the following article.