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Using the example from the article, buying a house in Orange County California is a luxury good: 1. Colloquially: they're rare, expensive, and highly prized 2
by __derek__ 4y ago
Using the example from the article, buying a house in Orange County California is a luxury good:
1. Colloquially: they're rare, expensive, and highly prized
2. Economically: demand for them increases as income increases
- samatman 4y agoIt's the only such good with such a close tie to the ability to earn the high salary to begin with. Sure, a doctor is socially expected to drive a German luxury car, but they can in fact choose to drive a Corolla at the cost of some light ribbing. A dentist in Orange County has a practice, I don't consider a twenty minute commute a luxury good. It's something people buy for common quality-of-life reasons if they can afford to, and it happens to be nauseatingly expensive.