Final answer:
A Veblen good is marked by increased demand as the price increases, contrary to the normal law of demand, since these goods serve as status symbols. This concept is an exception to typical market behavior, where buyers would pay more than the equilibrium price for reasons like the status symbolism tied to Veblen goods.
Step-by-step explanation:
The term Veblen good refers to a type of product for which the demand increases as the price increases, which is contrary to the typical law of demand in economics. This is because Veblen goods are perceived as status symbols; therefore, higher prices make them more desirable to consumers seeking to showcase their wealth or social status. This phenomenon is named after economist Thorstein Veblen, who observed this behavior towards luxury goods. True or false questions in various subjects test knowledge of specific assertions. In economics, a false statement may be 'In the goods market, no buyer would be willing to pay more than the equilibrium price.' This is false because for Veblen goods, and some other exceptions like Giffen goods or during speculative bubbles, buyers are often willing to pay more than the equilibrium price due to their unique characteristics or situations influencing buyer behavior.