What is a Superior Good?

What is a Superior Good?

What is a Superior Good? Jonathan Poland

A superior good is a type of good that tends to see an increase in demand as income levels rise. This is in contrast to an inferior good, which sees a decrease in demand as income levels rise.

For example, luxury goods such as designer clothing or expensive cars are often considered superior goods because people tend to purchase more of them as their income increases. On the other hand, basic necessities like rice and bread are often considered inferior goods because people tend to purchase less of them as their income increases.

Superior goods can be either normal or luxury goods. Normal goods are those that see an increase in demand as income levels rise, but they are not considered luxurious. Luxury goods are those that are considered luxurious and see an increase in demand as income levels rise.

Here are 12 examples of superior goods:

  1. Luxury cars, such as Mercedes-Benz or BMW
  2. Designer clothing and accessories, such as Gucci or Prada
  3. Fine jewelry, such as diamonds or gold
  4. High-end watches, such as Rolex or Omega
  5. Luxury hotels and resorts, such as the Ritz-Carlton or the Four Seasons
  6. Fine dining restaurants and Michelin-starred restaurants
  7. Luxury cruises, such as those offered by Carnival or Royal Caribbean
  8. Private jets or helicopters
  9. Luxury vacation homes or vacation rentals
  10. Artwork and antiques, such as paintings or sculptures by famous artists
  11. Premium spirits, such as whiskey or champagne
  12. High-end electronics, such as Apple’s iPhone or Samsung’s Galaxy.
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