A luxury item is not necessary for living but is deemed as highly desired within a culture or society. Discover more about the term "luxury item" here.
 | | Term of the Day | Words to Know | | |  | | Luxury Item | | A luxury item is not necessary to live, but it is deemed as highly desirable within a culture or society. As luxury goods are expensive, wealthy people are disproportionate consumers of luxury goods. This is because the less wealthy a person is, the higher a percentage of their income they need to spend on goods they need to live. Because of this luxury goods are often examples of conspicuous consumption, which is the purchase of goods mainly or solely to show off one's wealth. | | Read More » | | Consumerism | | Consumerism is the theory that a country that consumes goods and services in large quantities will be better off economically. | | Read More » | | | Luxury Tax | | A luxury tax is an ad valorem tax placed on products or services that are deemed to be non-essential or unneeded. Luxury taxes can also be referred to as excise taxes or sin taxes. | | Read More » | | | Income Elasticity of Demand | | The income elasticity of demand measures the relationship between a change in the quantity demanded for a particular good and a change in real income. | | Read More » | | | Inferior Good | | An inferior good is an economic term that describes a good whose demand drops when people's incomes rise. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
:max_bytes(150000):strip_icc()/money_budget_dv1693001-5bfc3c3446e0fb002605c373.jpg)
No comments:
Post a Comment