Veblen goods:
A) are an excellent example of the individual nature of utility.
B) are goods which consumers buy to show how wealthy they are.
C) are goods that people buy more of when their income decreases.
D) are inferior goods.

Question

Quizplus · Accepted Answer

Veblen goods are goods that consumers buy not necessarily for their utility or practicality, but for the status they confer on the buyer. They are often high-end luxury goods such as designer clothing, expensive jewelry or yachts. The demand for Veblen goods increases as the price of the good increases because the price signals the exclusivity of the good, causing those who can afford it to want it more in order to demonstrate their wealth and status.

Veblen Goods