A luxury good is a good that does not apply to the law of demand. For "normal" goods, as the price goes down, the demand goes up. For luxury goods, the price never goes down, because the supplier believes that if it were to ever go down, the demand would go down as well. This is just a theory though, because the supplier wouldn't dare test it in fear of losing demand. Louis Vuitton bags are luxury goods, and according to this website, Louis Vuitton bags never go on sale. In fact, this author believes that "if these luxury, designer handbags were too cheap it would not appeal to them and they would place a lower value on these items.", them being the buyers. People who have these expensive luxury handbags believe that having these bags makes them more important. When people see others with this bag they immediately know that they have money and that they can buy something like it for themselves. Even if it isn't the best looking bag, it is still a recognizable status symbol. According to this article, "Wealthy people for the most part enjoy telling others how much they've spent on luxury items because it makes them feel good, important and rich." Even in this recession, Louis Vuitton bags stay at the same price, and they will as long as some people can still afford to buy them.