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Higher prices increase demand are called giffen goods iirc. Veblen goods are goods that people buy to signal their higher status. (No opinion on whether lobst
by beagle3 9y ago
Higher prices increase demand are called giffen goods iirc.
Veblen goods are goods that people buy to signal their higher status.
(No opinion on whether lobsters outside of New England are Veblen goods. Am vegetarian)
- ghaff 9y agoThey both have inverted demand curves. Veblen goods because of status or because price becomes a signal. Giffen because of substitution effects. It's not clear that Giffen Goods actually exist.