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A '''Luxury good''' is a good for which [[demand]] is [[Inelastic Demand|inelastic]]. A Luxury good has an [[income elasticity of demand]] greater than one.
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]]