Luxury Good: 

In economics, a luxury good is a good whose demand increases more than proportionally as incomes increase, in contrast to a "necessity good", for which demand is not elastic. Luxuries on the other hand are said to have an income elasticity of demand is greater than one. This implies that demand increases more than proportionately to a change in income. Luxuries are goods or services that can be foregone during periods of below average income and falling consumer confidence. When incomes are rising strongly and consumers have the confidence spend more, the demand for luxury goods will also grow. During a recession, it is the demand for luxury goods that first decreases. Examples of luxury goods include fine wine, designer clothes, antique furniture, international air travel, Benz cars etc. Several manufactured products achieve the rank of "luxury goods" owing to their design, quality, durability or performance that are extraordinarily superior to the comparable substitutes. Many luxury goods are also termed as “positional goods”. These are goods or services where the consumer derives satisfaction (and utility) not just from consuming the good or service itself, but also from being seen to be a consumer by others. They play a role of class symbols as they tend to show the purchasing power of those who acquire them. Hence these goods are purchased with the main purpose of displaying wealth or income of their owners. Luxury goods are said to have high income elasticity of demand because as people become wealthier, they will buy more and more of the luxury good. This also means, however, that should there be a decline in income, its demand will fall. A luxury good may become a normal good or even an inferior good at different income levels, for example, if a wealthy person stops buying increasing numbers of luxury cars for his automobile collection to start collecting airplanes instead.