Mr. X and Mr. Y are rich rivals and, in a party, Mr. X wears an expensive dress and on seeing it Mr. Y who also has the same dress decided to reject…
CA Foundation · Business Economics · PYQS · September 2024
Mr. X and Mr. Y are rich rivals and, in a party, Mr. X wears an expensive dress and on seeing it Mr. Y who also has the same dress decided to reject the use of the same dress further. Rather Mr. Y will try to use an even more expensive one. Which effect affects Mr. Y?
Suggested Answer and Working Notes:
Correct Answer: Option (D)
D. Veblen Effect
Topics: Theory of Demand and Supply
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