Which of the following effects shows that some people consider the price of a commodity as the true indicator of its quality?

Veblen

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Speculative

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Snob

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Bandwagon

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Solution

The correct option is A
Veblen

According to the American economist Veblen, the demand for articles of distinction is more when their price is high. Veblen effect shows that some people consider the price of a commodity as the true indicator of its quality.

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