Veblen goods are those goods, the demand for which increases as the price of those goods increases and it falls when the price of it falls. Hence Veblen goods are an exception to the law of demand in economics which states that as he price of good falls the demand for it increase and vice versa. In simple words Veblen goods are bought because they are perceived to be high status goods. Given below are some of the examples for Veblen goods –
- Luxury cars like Ferrari and Mercedes which are bought because they are expensive.
- Diamonds or precious stones
- Antique collection of items
- Designer clothes and handbags
- Cosmetics items like perfumes