Economy, asked by HarikaPenukonda4401, 1 year ago

Difference between necessity and luxury good in economics

Answers

Answered by atiq96
1

the goods nessesory for living a life is called necessory goods like food, cloths, house etc. and goods like BMW, Nice apartments, swimming pools etc are luxurious goods.


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Answered by brainlyinuser
0

Answer:

Explanation:

  • In the terms of economics, a luxury good or upmarket good is such a good for which demand is always increasing more than proportionate rate as income rises, so,  expenditures on the good become a greater order of proportion with respect to overall spending.
  • Luxury goods are in contrast to the good of necessity, where demand increases in proportion to less than income.
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