Veblen Goods

Veblen goods are luxury items whose demand increases as their price rises, contrary to typical products. Normally, higher prices discourage buying, but for Veblen goods, a higher price can enhance their appeal because they serve as a status symbol. People purchase these items not just for their utility but also to display wealth or social status. Examples include designer handbags, luxury watches, and high-end cars. The unique characteristic is that demand and price move together, driven by the desire to signal prestige rather than practical need.