Superior goods are the highest type of normal goods, that is, goods whose demand increases as consumer income increases (i.e., they are governed by the Law of Normal Demand). For example: gourmet foods, international travel, and heirlooms. These goods typically have medium or high costs, and therefore their demand increases when consumers have more money and decreases when money is scarce. In fact, beyond a certain consumption threshold, superior goods can also be considered luxury goods.
In this respect, superior goods are distinguished from essential or basic goods, that is, from the normal goods indispensable for the survival and continuity of organized life and economic production, which tend to have lower costs. Similarly, superior goods displace inferior goods (that is, low-value goods) when consumption possibilities (that is, consumer income) increase.
For example, a low-income person regularly consumes a very poor, inexpensive brand of soda (i.e., an inferior good), because that’s what his budget allows. Until one day he decides to change jobs and gets one where he pays almost double. Then he decides to buy a better brand of soda from now on (i.e., a normal good), and occasionally an imported brand (i.e., a superior good).
- See also: Types of goods
Examples of higher goods
Examples of higher goods are:
- Water and air vehicles (yachts, personal planes) and late-model automobiles.
- Gourmet foods and spirits with designation of origin.
- Haute couture clothing or clothing created to measure for the consumer.
- Real estate such as houses, apartments and mansions.
- Cutting-edge technological devices, such as cell phones, smart TVs, personal computers, among others.
- Decorative works of art, such as paintings and sculptures.
- International travel.
- Luxury furniture.
- Relics and collectibles.
- Financial, logistical, or other services that are not classified as basic or public services.
