The demand curve of ostentation goods (Veblen goods) will be:
A. Negatively sloped
B. Positively sloped
C. Parallel to X-axis
D. None of the above
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Correct Answer : B.
Veblen Goods ?People buy some goods for their status value. these goods are called goods of ostentation or Veblen goods i.e. perfumes, fast cars, etc. The more expensive the goods are, the more people will desire them and therefore there will be upward slopping demand curve)