Goods Types Flashcards
What is a Private good
a good which is excludable and rivalrous. supplied by private sector businesses
What is a Public good
a good which is non-excludable and non-rivalrous. Usually provided by the government
examples of public goods
national defence, street lighting, clean air, prison/judicial system
examples of private goods
food, clothes, cars
what are substitute goods
two goods are substitutes if the products could be used for the same purpose by the consumers. For example ice cream and ice lollies
what are complementary goods
a good whose appeal increases with the popularity of its complement. for example an Xbox and an Xbox controller
what is a normal good
a type of a good which experiences an increase in demand due to an increase in income for example organic pasta instead of normal pasta
what is an inferior good
is a good whose demand decreases when consumer income rises. for example store-brand food.
What is derived demand
the demand for a good or service that results from the demand for a different, or related, good or service. for example a iPhone case to match the shape of the new iPhone.
what is a veblen good
a type of luxury good for which the demand increases as the price increases. for example designer clothes
what is a merit good
a commodity which is judged that an individual or society should have on the basis of some concept of benefit, rather than ability and willingness to pay.
What is a demerit good
a good or service whose consumption is considered unhealthy, degrading, or otherwise socially undesirable due to the perceived negative effects on the consumers themselves
