Question

At higher prices people demand more of certain goods not for their worth but for their prestige value- This called.

• A. Veblen effect
• B. Giffens paradox
• C. Speculative effect
• D. None of the above

Answer 1

The correct option is A Veblen effect

1:'Veblen effect' is concerned with conspicuous goods or high prestigious goods like diamonds.
2:Veblen goods are luxury goods or superior goods whose prices do not follow the typical economic laws of supply and demand.