While Giffen goods are inferior goods where the negative income effect outweighs the substitution effect, ___ goods are luxury items where demand increases as price rises because they serve as conspicuous status symbols.
- Veblen
- snob
- indifference
- 2011-12
Answer: Veblen
Named after sociologist Thorstein Veblen, these goods violate the standard law of demand not due to poverty (like Giffen goods), but due to 'conspicuous consumption.' For items like ultra-luxury watches or designer handbags, a higher price actually enhances their snob appeal and exclusivity, driving up demand among the ultra-wealthy.