luxury good
Sign in to saveAlso known as luxury, luxuries, luxury goods, luxury product, luxury products, upmarket good, superior good
type of desirable good
Wikidata facts
- Subclass of
- status symbol
- Image
- Patek-Philippe MG 2586.jpg
- Has use
- luxury
Show 3 more facts
- Commons category
- Luxury goods
- opposite of
- necessity good
- has characteristic
- income elasticity of demand
Sources (2)
via Wikidata · CC0
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Encyclopedic overview
Wine and foie gras In economics, a luxury good (or upmarket good) is a product or item or service for which demand increases more than what is proportional as income rises, so that expenditures on the good become a more significant proportion of overall spending. Luxury goods are in contrast to necessity goods, where demand increases proportionally less than income. Whereas people consume necessity goods to meet basic survival needs, luxury goods are consumed both for their "intrinsic quality and to signal their wealth and confirm social status." In economics, luxury goods is often used synonymously with superior goods.
Definition, etymology and usage
Excerpted from Wikipedia’s “luxury good” article, available under the CC BY-SA 4.0 licence.