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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.
संबंधित प्रश्न
Distinguish between:
Inferior goods and superior goods
State with reasons whether you agree or disagree with the following statement:
There is a direct relationship between the price of Giffen goods and its demand.
State with reason whether you agree or disagree with the following statement.
When price of Giffen goods fall, the demand for it increases.
When price of Giffen goods fall, the demand for it increases.
State with reason whether you agree or disagree with the following statement:
When price of Giffen goods fall, the demand for it increases.
In which exception to the law of demand does the consumer equate price and quality.
State with reasons whether you agree or disagree with the following statement:
When price of Giffen goods fall, the demand for it increases.
Give one point each of similarity and dissimilarity between Giffen goods and Veblen goods.
Which of the following best describes a Giffen good?
Why do people buy more luxury goods when prices go up, defying the usual law of demand?
