Veblen Good

A Veblen good is a type of luxury item whose demand increases as its price rises, contrary to typical goods. This happens because people buy these items to display wealth or social status; a higher price can make the item more desirable as a symbol of exclusivity. For example, expensive designer handbags or luxury cars often see increased sales when their prices go up, because owning them signals prestige. Essentially, the high price enhances their appeal as status symbols, leading to greater demand among consumers who want to showcase their wealth.