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en:basic-goods [2018/07/03 10:45] federico created |
en:basic-goods [2018/09/10 14:08] (current) federico |
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| ====== Basic Goods ====== | ====== Basic Goods ====== | ||
| - | Basic Goods are those goods that are used to satisfy basic needs, like food, shelter and clothing. | + | Basic Goods are those material things used to satisfy human requirements that are needed to survive, like food, shelter and clothing. |
| Examples of basic goods are: | Examples of basic goods are: | ||
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| **Elasticity** | **Elasticity** | ||
| - | Basic good have low[[:en:basic-goods:|income elasticity]] and low [[:en:basic-goods:|price elasticity]]. | + | Basic good have low [[:en:income-elasticity|income elasticity]] and low [[:en:price-elasticity-of-demand|price demand elasticity]]. |
| Low income elasticity: The quantity demanded changes less than proportionally with respect to the income. | Low income elasticity: The quantity demanded changes less than proportionally with respect to the income. | ||
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| In countries with high per capita income levels, the share of the expenses on basic goods, with respect to total expenses, is low. This share grows for low per capita income countries. | In countries with high per capita income levels, the share of the expenses on basic goods, with respect to total expenses, is low. This share grows for low per capita income countries. | ||
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| + | [[substitute goods examples]] | ||