Question

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.

what is the focus on?

A) Evaluating historical events
B) Analyzing financial data
C) Discussing consumer behavior
D) Exploring economic theories

Answer 1

The focus of this question is on discussing consumer behavior, specifically in relation to the price of goods. It explains why consumers still buy necessity goods even when the prices rise and why they buy Veblen goods despite their high prices due to the association of high prices with quality and status.

Step-by-step explanation:

The focus of this question is on discussing consumer behavior. It explores the behavior of consumers in relation to the price of goods, specifically necessity goods and Veblen goods. It explains that consumers always buy necessity goods even when prices rise because they are essential, while they buy Veblen goods despite their high prices because they associate high prices with quality and status.