Share these talks and lectures with your colleagues
Invite colleaguesWe noted you are experiencing viewing problems
-
Check with your IT department that JWPlatform, JWPlayer and Amazon AWS & CloudFront are not being blocked by your network. The relevant domains are *.jwplatform.com, *.jwpsrv.com, *.jwpcdn.com, jwpltx.com, jwpsrv.a.ssl.fastly.net, *.amazonaws.com and *.cloudfront.net. The relevant ports are 80 and 443.
-
Check the following talk links to see which ones work correctly:
Auto Mode
HTTP Progressive Download Send us your results from the above test links at access@hstalks.com and we will contact you with further advice on troubleshooting your viewing problems. -
No luck yet? More tips for troubleshooting viewing issues
-
Contact HST Support access@hstalks.com
-
Please review our troubleshooting guide for tips and advice on resolving your viewing problems.
-
For additional help, please don't hesitate to contact HST support access@hstalks.com
We hope you have enjoyed this limited-length demo
This is a limited length demo talk; you may
login or
review methods of
obtaining more access.
Printable Handouts
Navigable Slide Index
This material is restricted to subscribers.
Topics Covered
- Types of goods
- Normal goods
- Inferior goods
- Giffen goods
- Veblen goods
Talk Citation
Ramesh, S. (2019, May 30). Types of goods [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved August 31, 2024, from https://doi.org/10.69645/DBQI5882.Export Citation (RIS)
Publication History
Other Talks in the Series: Introduction to Microeconomics
Transcript
Please wait while the transcript is being prepared...
0:00
Hi I'm Dr. Sangarallngam Ramesh.
Welcome to this Henry Stewart talks,
here is Introduction to Microeconomics talk number 7.
In this talk we'll be analyzing the different types of goods which economists define,
and how demand and supply for good will depend on the nature of the good itself,
in other words the type of the good.
0:23
So why do economists classify goods into different types?
So because the demand for goods can
change due to price factors or non-price factors as we've
seen and for example true non-price factors are
change in consumers income or change in the distribution of income.
How demand for good is affected,
ceteris paribus which simply means all other factors are unchanged except
the income of the consumer or the distribution of
all the consumer will depend on the type of the good.
Economists classify goods into four different types,
not based on their intrinsic properties,
in other words the quality of the good or other factors related to the good,
but simply on how demand would change when the income level changes.
So in this case consumers define and analyze
consumer and firm behavior with respect to
four different types of goods and these are normal goods,
inferior goods, giffen goods and veblen goods.
1:27
So in the case of a normal good,
which we can take for example as a new pair of jeans,
when the nominal income,
the income paid by firms to workers changes,
increases then this will mean that
the consumer will be able to buy more new pairs of jeans.
So in this demand and supply diagram for new pairs of jeans,
where we have the price of jeans on
the vertical y-axis and the quantity of genes on the horizontal x-axis,
the upward sloping supply curve SS and the downward sloping demand curve DD,
we see that when the consumer is nominal income increases the demand curve will shift
to the right as shown by the 2 blue arrows.
So we could say that for normal good,
the new pair of jeans,
as income rises the demand curve will shift to the right.
We can also consider the impact of the change in demand for an inferior good.