Group items tagged

This article is about market for high-end and luxury goods in Asia. With an increase in income and spending power, there has been an increase in the demand for luxury goods.The article also highlights the movement of these luxury markets from NY and Geneva as a result of the economic crisis. Income has decreased in these places, therefore demand for luxury items has decreased.

This article is about how the financial crisis of 2008 has affected the market for luxury yachts in the Middle East. The article reports that sales of leisure boats are expected to plunge up to 75% as people are less willing to splurge on luxury goods. This shows that the YED for luxury yachts is relatively elastic, as the loss of income resulting from the crisis has caused a greater than proportional change in quantity demanded.

This article reports on the closing of a high-end steakhouse in Vancouver. The demand for expensive food has dropped as incomes have faller due to the recession. This means that this sort of fancy restaurant has a positive income elasticity. As income falls, demand falls.