Luxury Goods
Definition
Luxury goods are products that are not essential but are highly desired and associated with wealthy or affluent people. They are often expensive and high quality.
Analogy
Think of luxury goods like the toppings on a pizza. You don't need them to have a pizza (the basic necessities), but they make it more enjoyable and desirable.
Related terms
Consumer Culture: A form of capitalism in which the economy is focused on the selling of consumer goods and the spending of consumer money.
Status Symbol: An object which is meant to signify its owners' high social and economic standing.
Supply and Demand: The amount of a commodity, product, or service available (supply) and the desire of buyers for it (demand). This principle often influences pricing for luxury goods.
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