- Must be 250 words!!! PLEASE HELP THIs Is a post-first discussion topic. There
ID: 1137010 • Letter: #
Question
- Must be 250 words!!! PLEASE HELP THIs Is a post-first discussion topic. There are currently 161 threads in this topic. Join the conversation by creating a thread! TOPIC DESCRIPTION to as Vablen goods. These are super-high-end luxury goods such as a Rolls Royce or a designer dress. These goods often seem to price falls, 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 Name a good or service that you believe might be a Veblen good Have you Instructions at all prices, and the law of demand still applies, but there are some price points that bring about this odd result need to post one initial discussion and reply to one of your classmates Initial discussions should be approximately 250 words, and replies should be appraximately 100 words 857 PM rch INS DEL dad R0Explanation / Answer
While, we know that demand of a commodity is determined by the price and is directly related to it, it is clear that as price of a commodity would rise, demand for the product would further reduce.
However, a special category of goods known as veblen goods are spared from this phenomenon. These are those goods, which are directly propotional to the change in price. I.e any increase in the price of the commodity leads to further higher demand for the good.
These are usually considered to be luxury items and are normally out of reach for middle class people. Or those with lower income. Its exclusive nature is that of being a status symbol.
Veblen goods are fairly common place but cannot be bought by everyone. Some examples of these types of goods could be in the form of luxury watches, designer jwelery, luxury cars etc.
These are moreover symbols of success and are bought to showcase the same than the actual utility value of the good being so high.
Veblen goods are generally aimed at affluent individuals and have a very strong brand identity that is synonymous with luxury and are far more likely to be sold in upscale boutiques/showrooms than in common departmental stores.
While we might not have directly owned such a good, everyone has the desire to own an porche or a mercedez as a car.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.