Consumer Durables Goods

Consumer Durables Goods

Consumer Durables, goods bought by consumers which yield a flow of services to the buyer over a period of time, such as furniture, in contrast to goods used once and for all, like food. In practice attention is usually focused on durable goods whose price is high relatively to the consumer's income, such as houses, cars, refrigerators, washing machines, furniture. Consumer durables are important in economic analysis because expenditure on them may fluctuate widely according to the general economic situation, people's expectations and other influences, and because the analysis of demand for them raises special problems, e.g. durability means that existing stocks of goods are large elatively to new production coming on to the market; prices of new and second-band consumer durables are interrelated; demand is affected by replacement booms; and so on.

Because their price is high in relation to the income of many consumers, consumer durables are commonly bought by hire purchase or other methods of spreading the payment over a period so that each instalment is not a large proportion of income.

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