Durable good: Difference between revisions
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[[Image:2005 toyota corolla s rear left.jpg|thumb|A [[automobile|car]] is a '''durable good''' in economics. The [[gasoline]] that powers it is a '''non-durable good'''.]] |
[[Image:2005 toyota corolla s rear left.jpg|thumb|A [[automobile|car]] is a '''durable good''' in economics. The [[gasoline]] that powers it is a '''non-durable good'''.]] |
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Revision as of 04:45, 2 April 2010
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In economics, a durable good or a hard good is a good which does not quickly wear out, or more specifically, it yields services or utility over time rather than being completely used up when used once. Most goods are therefore durable goods to a certain degree. These are goods that can last for a relatively long time, such as refrigerators, cars, and DVD players,[1] and such big-ticket items should continue to be serviceable for three years, at least. Perfectly durable goods never wear out. An example of a durable good might be a brick. As a counter-example, sticky tape is not very durable.
Examples of consumer durable goods include cars, appliances, business equipment, electronic equipment, home furnishings and fixtures, houseware and accessories, photographic equipment, recreational goods, sporting goods, toys and games.
Durable goods are typically characterized by long interpurchase times--the time between two successive purchases.
Nondurable goods or soft goods (consumables) are the opposite of durable goods. They may be defined either as goods that are used up when used once, or that have a lifespan of less than 3 years.
Examples of nondurable goods include FMCGs such as cosmetics and cleaning products, food, fuel, office supplies, packaging and containers, paper and paper products, personal products, rubber, plastics, textiles, clothing and footwear.
Durable goods, nondurable goods and services together constitute the consumption of an economy.
See also
References
- ^ Sullivan, arthur (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 302. ISBN 0-13-063085-3.
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