Consumer Durables Goods

Consumer Durables Goods

Consumer Durables, goods bought by consumers which yield a flow of services to the buyer over a period of time, such as furniture, in contrast to goods used once and for all, like food. In practice attention is usually focused on durable goods whose price is high relatively to the consumer's income, such as houses, cars, refrigerators, washing machines, furniture. Consumer durables are important in economic analysis because expenditure on them may fluctuate widely according to the general economic situation, people's expectations and other influences, and because the analysis of demand for them raises special problems, e.g. durability means that existing stocks of goods are large elatively to new production coming on to the market; prices of new and second-band consumer durables are interrelated; demand is affected by replacement booms; and so on.

Because their price is high in relation to the income of many consumers, consumer durables are commonly bought by hire purchase or other methods of spreading the payment over a period so that each instalment is not a large proportion of income.

More - Economics University - University Economics


consumeraffairs.org.uk

Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk site is therefore not a final statement of economic doctrine.

Economics is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.