Consumer Goods

Definition

Products bought for consumption by average consumers. These include items such as food, clothing, electronics etc., which are not used for further production processes but directly consumed by individuals.

Related terms

Capital Goods: Goods used in the production of other goods, such as machinery or buildings.

Disposable Income: The amount of money that households have available for spending and saving after income taxes have been accounted for.

Supply and Demand: An economic model which determines price in a market. It postulates that in a competitive market, the unit price will vary until it settles at a point where the quantity demanded equals the quantity supplied.