The ________ occurs when lower prices of high-end products actually reduces their demand.
A) snob effect
B) inverse demand principle
C) non-conformity effect
D) elite polarization

Question

Quizplus · Accepted Answer

The snob effect refers to a situation where the demand for a certain good decreases as its price decreases because the good is perceived as less exclusive or desirable. This is because consumers of high-end products often value the exclusivity and status associated with owning expensive items. Lower prices can diminish this perceived exclusivity, leading to reduced demand.

The ________ Occurs When Lower Prices of High-End Products Actually