Question

higher the price of a certain luxurious articles, higher will the demand this concept is called ​

Answer 1

Veblen Effect Is The Answer

Answer 2

Higher the price of a certain luxurious article, higher will the demand, this concept is called the veblen effect.

• Veblen effect says that, the demand for the goods is increased due to the fact that it bears higher than a lower price.
• This effect is a function of price.
• Goods like jewellery and luxurious articles are meant for conscious consumption.
• In simpler terms the veblen effect says that, higher the price of goods is paid, greater will be the satisfaction.
• This effect causes an upward sloping market demand curve.