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    Question

    “Higher the price of certain luxurious articles,

    higher will be the demand” This concept is called
    A Giffen effects Correct Answer Incorrect Answer
    B Veblen effects Correct Answer Incorrect Answer
    C Demonstration effects Correct Answer Incorrect Answer
    D Both b & c above Correct Answer Incorrect Answer

    Solution

    Veblen Goods are a class of goods that do not strictly follow the law of demand, which states that there exists an inverse relationship between the price of a good or service and the quantity demanded of that good or service. Veblen goods violate the law of demand after prices have risen above a certain level.

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