good (economics)

In economics, a term often used to denote any product, including services. Equally, a good is often distinguished from a service, as in ‘goods and services’. The opposite of a normal good, a product for which demand increases as a person's income increases, is an inferior good, a product for which demand decreases as income increases. A free good is one which an individual or organization can consume in infinite quantities at no cost, like the air we breathe. However, most goods are economic goods, which are scarce in supply and therefore have an opportunity cost. In a free market, economic goods are allocated through prices.