Keep in mind that, for economists, the definitions luxuries and necessities are based on income elasticity. When an economist uses the term necessity in this way, she is simply making a statement about the observed income elasticity, not a judgment about the usefulness or importance of the good.

   The same is true for the other classification of normal goods, luxuries. An economist classifies a good as a luxury based on how consumers consumption changes when income changes, not on whether she thinks such goods are frivolous or on any other judgment about the appropriateness of the good.

   Finally, a reminder about inferior goods. This is also a classification that involves no judgment on the quality of the good, but rather on the way consumers respond to changes in income.

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