Luxury good

Author Topic: Luxury good  (Read 184 times)

Offline Md. Alamgir Hossan

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Luxury good
« on: April 15, 2017, 04:53:26 PM »
A luxury good means an increase in income causes a bigger % increase in demand. It means that the YED is greater than one. For example, high definition TV’s would be luxury. When income rises, people spend a higher % of their income on the luxury good. (Note: a luxury good is also a normal good, but a normal good isn’t necessarily a luxury good)