luxury

Examples of luxury in the following topics:

• Income Elasticity of Demand

  • This is typical of a luxury or superior good.
  • The consumer may be selecting more luxurious substitutes as a result of the increase in income.

• The consumption function

  • Generally, induced consumption relates to the purchase of goods and services not strictly required for survival, such as luxury goods.

• Market Demand

  • Two different hypothetical types of goods with upward-sloping demand curves are Giffen goods (an inferior but staple good) and Veblen goods (goods characterized as being more desirable the higher the price; luxury or status items).

• Colonization

  • In the few small cities and among the larger plantations of North Carolina, South Carolina, and Virginia, some necessities and virtually all luxuries were imported in return for tobacco, rice, and indigo (blue dye) exports.

• Determinants of Price Elasticity of Demand

  • Luxury products, on the other hand, tend to have greater elasticity.

• Definition of Price Elasticity of Supply

  • Elastic goods are usually viewed as luxury items.

• Applications of Elasticities

  • Elastic products are usually luxury items that individuals feel they can do without.

• The Importance of Productivity

  • This is a value-added process that can effectively raise living standards through decreasing the required monetary investment in everyday necessities (and luxuries), making consumers wealthier (in a relative sense) and businesses more profitable.

• Deriving the Demand Curve

  • Goods such as high-end luxury items like expensive fashion often demonstrate this type of counter-intuitive trend, where the high price of an item is attractive to the consumer for the sake of displaying wealth.

• Willingness to Pay and the Demand Curve

  • Veblen goods are expensive luxury products, such as designer handbags and high-end cars.