Veblen Goods — When Higher Prices Increase Demand

Today, we are dealing with a concept that flips conventional wisdom upside down.

In most cases, higher prices reduce demand — that’s Econ 101. But what if, in some markets, raising the price actually increases desire?

That’s the paradox of the Veblen Good — a product that becomes more appealing the more expensive it gets.

Let’s get smarter.

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