Independent Goods

Independent goods are goods that have a zero cross elasticity of demand. Changes in the price of one good will have no effect on the demand of an independent good. For example, a person's demand for nails is independent of his or her demand for bread, since they are two unrelated types of goods.



Famous quotes containing the words goods and/or independent:

    But then in what way are things called good? They do not seem to be like the things that only chance to have the same name. Are goods one then by being derived from one good or by all contributing to one good, or are they rather one by analogy? Certainly as sight is in the body, so is reason in the soul, and so on in other cases.
    Aristotle (384–322 B.C.)

    The class of citizens who provide at once their own food and their own raiment, may be viewed as the most truly independent and happy.
    James Madison (1751–1836)