define veblen effect

Dear Student,
Heres is your answer,

Veblen Goods are a class of goods that do not strictly follow the law of demand, which states that there exists an inverse relationship between the price of a good or service and the quantity demanded of that good or service. Veblen goods violate the law of demand after prices have risen above a certain level.

The Veblen Effect is the positive impact of the price of a commodity on the quantity demanded of that commodity.

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