Ordinary good

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This article defines a property of goods: a property that makes sense in the context of a good being bought and sold, and evaluated from the perspective of the buyer, seller, or others affected by it.
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Definition

An ordinary good is a good satisfying the law of demand, which can be stated in the following equivalent forms:

  • Its price elasticity of demand is negative (or at least nonpositive).
  • ceteris paribus, an increase in the price leads to a decrease (or at least no increase) in the quantity demanded.
  • ceteris paribus, a decrease in the price leads to an increase (or at least no decrease) in the quantity demanded.

Relation with other properties

Similar properties

Opposite properties