EconLearn
AP MicroeconomicsMicroeconomic Theory

Veblen Good

A Veblen good is a luxury good whose demand increases as its price rises, because the high price signals status.

Unlike normal goods, a higher price makes Veblen goods more desirable as symbols of wealth or exclusivity (e.g., designer items). This conspicuous-consumption effect can produce an upward-sloping demand curve over some price range.

Related terms

AP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, EconLearn.