Spending on pleasures rises slowly as income rises, whereas spending on essentials rises sharply. When a consumer's income rises, they are more likely to purchase more needs and spend more money on luxuries, though more slowly.
If a need is something that everyone needs, then a luxury must be something that no one genuinely needs but that many people want. But the word in the dictionary goes a little bit further. The definition of a luxury is "an inessential, desirable product that is expensive or difficult to attain."
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