Producer’s or capital goods are the goods used for the production of final consumer goods. These goods do not directly satisfy human wants but help in their production. The demand for capital goods is called derived demand. Factory building, plant, equipment, machinery, dams, canals, roads, bridges, powerhouses, etc are the examples of capital goods. Capital goods can be classified into two types: (i) Single-use capital goods, and (ii) Durable capital goods.
