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प्रश्न
‘Price is an indicator of quality.’ The statement applies to ______.
पर्याय
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 reason whether you agree or disagree with the following statement:
When the price of Giffen goods falls, the demand for it increases.
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 reasons whether you agree or disagree with the following statements :
When price of Giffen goods fall, the demand for it increases.
What is contraction in demand?
State two circumstances under which the demand curve slopes upwards to the right.
What are Giffen goods?
Explain the following diagram with reference to the concept of Giffen goods.
The demand curve can slope upwards from left to right. Give one argument in support of this statement.
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?
