What is a Veblen good?

Answer
Veblen good
Veblen good
Luxury good with increased demand as price increases
Definition
A Veblen good is a luxury product for which demand increases as the price increases, contrary to the law of demand.
Named After
Named after American economist Thorstein Veblen.
Demand Characteristic
Characterized by an upward-sloping demand curve.
A Veblen good is a type of luxury item for which demand increases as its price rises, contrary to the traditional law of demand. Named after economist Thorstein Veblen, these goods are often purchased to display wealth and social status, a concept known as conspicuous consumption. Examples include luxury cars, designer clothing, and expensive jewelry. The demand curve for Veblen goods slopes upward, meaning higher prices make them more desirable due to their exclusivity and perceived quality.
Related
how does conspicuous consumption influence the demand for Veblen goods
what are some modern examples of Veblen goods
how do Veblen goods differ from Giffen goods
why do people buy Veblen goods despite their high prices
can a product transition from being a normal good to a Veblen good
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