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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
Explain briefly anyone determinant of an exceptional demand curve.
Statements that explain Giffen’s paradox:
- It is an exception to the law of demand.
- It is applicable to inferior or low quality goods.
- Demand increases when the prices of inferior goods fall
- It was identified by Prof. Alfred Marshall.
State with reason whether you agree or disagree with the following statement.
When price of Giffen goods fall, the demand for it increases.
State with reasons whether you agree or disagree with the following statements :
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.
Why are prestige good an exception to the law of demand?
Which situation is an example of speculation affecting demand?
