Difference between consumer durables and capital goods
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Answer:
Difference Between Consumer Goods and Capital Goods
consumer goods vs capital goodsIn economics, goods are considered as those commodities which are capable of satisfying human wants and desires. There is two primary classification of goods, i.e. consumer goods and capital goods. Consumer goods are defined as the goods that are used for final consumption, i.e. the goods are not used for further processing.
On the other hand, capital goods are those goods that are used for future production by the manufacturers, rather than by the consumers for final use. The line of demarcation amidst these two type of goods is very thin and blur. The only point that forms a base for the difference between consumer goods and capital goods is their use.
Content: Consumer Goods Vs Capital Goods
Comparison Chart
Definition
Key Differences
Conclusion
Comparison Chart
BASIS FOR COMPARISON CONSUMER GOODS CAPITAL GOODS
Meaning Goods that are used by the end user for consumption is called consumer goods. Goods that are deployed to produce consumer goods is called capital goods.
Marketing Business to Consumer Business to Business
Purpose Bought for personal consumption. Bought for making other products.
Buyer Consumer Manufacturers
Demand High Comparatively less
Price determination By suppliers By companies
Explanation: