The prices for these luxury goods are getting more expensive rather than cheaper, so why are these sales escalating? Population growth is one possibility as the greater the population, the greater the demand

Authors Avatar

Rahim Ladhani 3S1

Source: The Toronto Star

Title of Article: Conspicuous Consumption

Date of Article: Friday September 16th 2005

Submission Date: Thursday November 3rd 2005

Society today is based on the fundamental concept of supply and demand. If the demand increases the quantity supplied will rise. If the demand decreases the quantity supplied will diminish. However, the fluctuation in demand for all products is based on numerous factors such as price, population, income, advertising and more influential than price, taste. The Toronto Star printed an article on luxury items and how these extravagant goods are now in higher demand than ever before. Expensive brand names such as Lamborghini, Prada and Tiffany & Co as well as castles are having a vintage year. Lavish homes in the Toronto area that are worth $1.5 million were up 48 per cent in the first half of 2005. Phil Soper, the president and CEO of Toronto-based Royal LePage Real Estate Services commented after hearing about this newfound data. "Sales in this price category have experienced the highest year-over-year growth of all price categories since 1996."

Join now!

        The prices for these luxury goods are getting more expensive rather than cheaper, so why are these sales escalating? Population growth is one possibility as the greater the population, the greater the demand because there are more people to contribute. As well, the advertisement of these items on television and in films have played a major role in heightening sales as luxury goods companies have mined the celebrity-obsessed culture, and red-carpet events such as the Toronto Film Festival to create huge demand for products. Income is also a factor in the rising of expensive items as one can only ...

This is a preview of the whole essay