LUXURY GOODS IN THE ECONOMIC THEORY: HISTORY AND PRICE

Abstract

The purpose of this article is an explanation of what luxury goods are, their history and how they function in economic theory. The aim of this article is also an explanation of the Veblen effect, the Giffen paradox and Engel’s law. The test method is the method of making survey of the buyers of luxury goods and services, that will show how the economic theory of how luxury goods work in practice and will answer the question is this still in effect. This article is focused on a luxury goods and services in the theory of an economy.