Difference between revisions of "Luxury good"
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| − | A '''Luxury good''' is a good for which [[demand]] | + | A '''Luxury good''' is a good for which [[demand]] increases more than proportionately with an increase in income. A Luxury good has an [[income elasticity of demand]] greater than one. Many luxury goods are status symbols, such as expensive jewellery or cars, which are bought as a demonstration of wealth. |
[[Category:Economics]][[Category:Luxury]] | [[Category:Economics]][[Category:Luxury]] | ||
Latest revision as of 13:57, August 6, 2010
A Luxury good is a good for which demand increases more than proportionately with an increase in income. A Luxury good has an income elasticity of demand greater than one. Many luxury goods are status symbols, such as expensive jewellery or cars, which are bought as a demonstration of wealth.