Tipos de bens

May 4, 2007

Art Lightstone, HTS School of Economics

Types of Goods
Types of Goods - Related to Income: inferior good: goods for which demand decreases as consumer income rises. Thus, it’s “income elasticity” will be negative. Example: Inter-city bus service and inexpensive foods such as bologna, hamburger, and frozen dinners. normal good: goods for which demand increases as consumer income rises. Thus, it’s “income elasticity” will be positive. Most goods are normal goods, hence the name “normal.” superior good: goods that will tend to make up a larger proportion of consumption as income rises. As such, they are an extreme form of normal good. Thus, a superior good’s “income elasticity” will be both positive and greater than 1. A superior good might be a luxury good that is not purchased at all below a certain level of income, such as a luxury car. luxury good: a more colloquial term that is synonymous with “superior good.”

Types of Goods - Related to Price: ordinary good: goods for which quantity demanded increases as the price for the good drops; conversely, quantity demanded decreases as the price for the good increases, ceteris paribus (all other things being equal). Giffen good: a good that will experience an increase in quantity demanded in response to an increase in price. In order to be a true Giffen good, price must be the only thing that changes to prompt a change in quantity demand. Conspicuous consumption (such as found with Veblen goods) is not a factor. The classic example is of inferior staple foods, whose demand is driven by poverty that makes their purchasers unable to afford superior foodstuffs. As the price of the cheap staple rises, consumers can no longer afford to supplement their diet with superior foods, and must consume more of the staple food. Veblen good (aka ostentatious goods): often confused with Giffen goods, Veblen goods are goods for which increased prices will increase quantity demanded. However, this is not because the