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प्रश्न
'Price is an indicator of quality'. The statement applies to ______.
विकल्प
Bandwagon effect
Snob effect
Veblen effect
Giffen effect
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उत्तर
'Price is an indicator of quality'. The statement applies to Snob effect.
Explanation:
In microeconomics, the snob effect refers to consumers demand for rare and expensive products to differentiate themselves from the majority. The product's pricing indicates its quality. Consumers value uniqueness and choose to pay more.
APPEARS IN
संबंधित प्रश्न
Distinguish between:
Inferior goods and superior goods
State with reason whether you agree or disagree with the following statement:
When the prices of Giffen goods falls, demand for such goods rises.
State with reason whether you agree or disagree with the following statement:
There are no exceptions to the law of demand.
Questions:
- Demand Curve D1D1indicates ______ (1m)
- Demand Curve D2D2indicates______ (1m)
- Name the above diagram and explain. (2m)
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Questions:
- Diagram’ A ‘represents _____in demand (1m)
- Diagram ‘B’ represents _____in demand (1m)
- In diagram ‘A’ movement of demand curve is in_____ direction (1m)
- In diagram ‘B’ movement of demand curve is in______ direction (1m)
Mention one exception to the law of demand. Give one point only.
What are Giffen goods?
Why are prestige good an exception to the law of demand?
Why do people buy more luxury goods when prices go up, defying the usual law of demand?
Which exception to the law of demand is primarily based on consumer beliefs about product quality?
