Veblen goods:
A)are an excellent example of the individual nature of utility.
B)seem to contradict the individual measure of utility.
C)are goods that people buy more of when their income decreases.
D)None of these is true.

Question

Quizplus · Accepted Answer

Veblen goods are goods whose demand increases as their price increases, which seems to contradict the individual measure of utility. This is because the appeal of Veblen goods is largely based on the conspicuous display of wealth or status, rather than any actual increase in utility from consuming the good.

Veblen Goods