Short notes on Economics:Types of Goods- Micro economics

 Micro economics 

• Inferior good 
• Inferior goods are goods whose demand decreases as income increases. 
• Increase in income causes a fall in demand. 
• E.g. When income of an individual increases, spends less on cheap cloth.
• Goods are cheap in nature. 
• Potatoes, baked beans etc.

Superior good/ normal goods 

• Demand increases as income 
• increases increase in income cause to increase in demand
• expensive in nature 
• e.g. vacation trips 

Luxury goods

• Demand increases more than proportionally as income rises.
• Goods has good quality, durability and remarkably superior in nature. 
• E.g. Gold ornaments

Prestige goods 

• Goods which give high prestige, status and value these goods are limited in nature 
• e.g. antique collections

Giffen goods 

• Increase in price causes increase in demand. 
• E.g. Wheat

Complementary goods 

• Goods which are used together. 
• E.g. Pencil and sharpener

Substitute goods

• Goods which can used in place of other.
• E.g. Pepsi and coke