Classification of Goods
Goods are broadly classified into three categories.
Goods which are indispensable for the human beings to exist in the world are called “Necessaries”. For example, food, clothing and shelter.
Goods which are not indispensable for life but to make our life easy, convenient and comfortable are called “Comforts”. Example: TV, Fan, Refrigerator and Air conditioner.
Goods which are not very essential but are very costly are known as “Luxuries”. Example: Jewelry, Diamonds and Cars. However, for people with higher income they may look necessaries or comforts.