Question

what is veblen effect​

Answer 1

Veblen effect a theory of CONSUMPTION that suggests that consumers may have an UPWARD-SLOPING DEMAND CURVE as opposed to a downward-sloping DEMAND CURVE because they practice CONSPICUOUS CONSUMPTION. A downward-sloping demand curve implies that the quantity demanded of a particular good varies inversely with its price (as price increases, quantity demanded falls). The Veblen effect suggests that quantity demanded of a particular good varies directly with a change in price (as price increases, demand increases).

Answer 2

Answer:

It is caused either by the belief that higher price means higher quality or by desire for conspicuous consumption.

Explanation:

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