Goods - Term Overview

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Goods are those physical, cultural or intellectual elements that respond to the satisfaction of a specific need. The term usually refers specially to the so-called economic goods, that is, those goods that obtain a price in the market in the free game between supply and demand. Thus, they obtain a valuation in monetary terms. Assets can be classified in many ways based on their characteristics.

According to their mobility, that is, their ability to move from one place to another, assets are classified as movable and immovable. Thus, for example, a computer, a desk, a chair, are considered movable property to the extent that they are easy to move and can be marketed elsewhere; on the contrary, the real estate are fixed in place, such as a building.

According to their durability, goods can be classified into durable consumer goods and non-durable consumer goods. In the first case, the goods have a consumption that lasts over time, while in the second we find elements that are exhausted with only one use (such as food).

Regarding their function, goods can be classified as consumer goods, when they satisfy a certain need immediately; intermediate goods, when their obtaining is derived from other means; and finally capital goods, that is, goods that are used to create other goods and services, such as a textile machine.

According to their relationship with other goods considering their demand, the goods can be classified as complementary and substitute. In the first case, we find goods that may be used together, such as cars and fuel: when the consumption of one goes down, the consumption of the other goes down. In the case of substitute goods, when the demand for one good decreases, that for another good increases, as can happen with meat from different animals for food.

Finally, allusion can be made to goods classified according to income. Thus, we find goods whose use decreases when the individual's income increases, called inferior goods; goods whose consumption increases when the individual's income does and which are called normal goods; luxury goods, whose consumption increases when the individual's income increases; and finally goods whose increase in relation to income is little by virtue of their condition of necessity.

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