CONSUMER GOOD

in economics, any tangible commodity produced and subsequently purchased to satisfy the current wants and perceived needs of the buyer. Consumer goods are divided into two categories, durable goods and nondurable goods. Consumer durable goods possess a significant life span, often three years or more, although some authorities accept one year or more. The consumption of a durable good is spread over its life span (a characteristic of capital goods), and this tends to produce a series of services, in the form of maintenance of the durable good. The length of consumption and the maintenance of durable goods are similar to those of capital goods and this sometimes makes the dividing line between the two hazy. The longevity and often higher cost of durable goods usually causes consumers to postpone expenditures on them, causing durables to be the more volatile component of consumption. Common examples of consumer durable goods are automobiles, furniture, household appliances, and mobile homes. Consumer nondurable goods are purchased for immediate or almost immediate consumption and have a life span ranging from minutes to three years. Common examples of nondurable goods are food, beverages, clothing, shoes, and gasoline.