- discussion should be approximately 250 words. Lesson Three orum (10) Topic: Le
ID: 1135688 • Letter: #
Question
- discussion should be approximately 250 words. Lesson Three orum (10) Topic: Lesson Three: Discussion Forum (10) Organize Topic Threads on this page and apply settings to several or all threads.Threads are listed in a tabular format. The Threads can be sorted by clicking the cobonn title or the caret at the top of each column. More Help This is a 'post-first' discussion topic. There are currently 161 threads in this topic. Join the conversation by creating a thread! Create Thread TOPIC DESCRIPTION In microeconomics, there are goods referred to as Veblen goods. These are super-high-end xury goods such as a Rolls Royce or a designer dress These goods often seem to contradict the law of demand, in that when price fals, fewer people buy the good because it loses its exclusivity Conversely, an increase in price may cause an increase in quantity demanded This doesn't happen at all prices, and the law of demand stil applies, but there are some price points that bring about this odd result Name a good or service that you believe might be a Veblen good Have you ever owned a Veblen good? Would you want to? You will need to post one initial discussion and reply to one of your classmates Initial discussions should be approximately 250 words, and replies should be approximately 100 words Grading Information 708 PM archExplanation / Answer
I once ran across a term and now can’t find it. It’s the economic theory that consumers will purchase a product or service which cost more money for the sole believe that it’s of higher quality due to its higher price. Is there a designated term for this?
Why might people buy more as price increases?
In the case of a Veblen good it is because people think more expensive goods are better quality and status symbols, and so some people may buy more. Studies suggest people do get more satisfaction from receiving expensive goods. It is possible that designer clothes or luxury cars may sometimes meet the criteria of Veblen goods. This is often termed the snob effect: people equate price to quantity.
If Veblen goods do exist the demand curve would slope the opposite way.
Eg: Vintage Wine, Modern Art , Designer Clothes, Expensive Car's etc
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.