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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
Explain briefly anyone determinant of an exceptional demand curve.
State with reasons whether you agree or disagree with the following statements :
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.
“The inverse relationship between price and quantity demanded does not hold good in many cases.”
- Justify the above as Yes or No.
- If justified, explain in brief the Giffen Effect.
What is contraction in demand?
State two circumstances under which the demand curve slopes upwards to the right.
Give one point each of similarity and dissimilarity between Giffen goods and Veblen goods.
Why do people buy more luxury goods when prices go up, defying the usual law of demand?
Which situation is an example of speculation affecting demand?
