CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

If a product is a Veblen good, ______
A. demand is inversely related to income.
B. demand is inversely related to the price of substitutes.
C. demand is directly related to price.
Explanation: Remember, Veblen goods are products of conspicuous consumption. Demand is upward-sloping.

User Contributed Comments 1

User Comment
bidisha As price increases, so does the demand. I.e. luxury purses which shows status.
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