Necessity Goods and Veblen GoodsWhen the price of a good increases, consumers typically buy less of it. Yet two types of goods donot follow this pattern. Necessity goods are products that people always buy, even when prices rise.Consumers purchase necessi

Necessity Goods and Veblen Goods
When the price of a good increases, consumers typically buy less of it. Yet two types of goods do
not follow this pattern. Necessity goods are products that people always buy, even when prices rise.
Consumers purchase necessity goods because they need them. Even if a necessity good doubles in
price, people will always attempt to buy it.
Veblen goods, conversely, are products that people buy more of because of the goods' high prices.
However, people buy these goods, even when they are expensive, for different reasons. People
purchase Veblen goods despite their high prices because many consumers equate high prices with
quality and status. By buying Veblen goods, consumers feel that they are getting a better product than
they would with lower-priced goods that perform the same function.