Spending on luxuries rises sharply as income rises, whereas spending on necessities rises more slowly.
What Is a Luxury Good?
- Although a luxury item is not required for survival, it is nonetheless seen as very desirable within a culture or civilization.
- As a person's wealth or income rises, so does the demand for luxury products.
- Luxury item purchases often rise proportionately to income growth, which is typically more than zero.
- Rich individuals purchase a disproportionate amount of luxury items because they are pricey.
- Since a larger portion of their money is spent on living expenditures for those who are not rich, they typically do not purchase luxury products.
- Conspicuous consumerism, or buying things primarily or exclusively to flaunt one's riches, might include the purchasing of luxury items.
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