Community and Government

What Is a Veblen Good? Veblen Goods and the Law of Demand

Written by MasterClass

Last updated: Oct 11, 2022 • 2 min read

Veblen goods are luxury items that become more desirable as their prices rise. Their high price is associated with higher quality and exclusivity. Consumers in the market for luxury items are likely to purchase Veblen goods to showcase their wealth and social status.