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Economics Lecture Four

82 bytes added, 03:09, 5 March 2013
/* For Honors Students Only: Giffen Goods */ Notice that a "Giffen good" is not a status symbol as a Veblen good would be.
Giffen goods are exceptions to the Law of Demand ... if Giffen goods really exist! Many, including your teacher, are skeptical that there really is such a thing as a Giffen good.
Economist Thomas Thorstein Veblen suggested that a "status symbol," like a fancy car or diamond, can have an increase in demand when its price goes up. While "status symbols" certainly do exist, it is questionable whether the demand for them ever increases due to an increase in price. If it does occur, then it is a "Veblen good." Notice that a "Giffen good" is not a status symbol as a Veblen good would be.
==Utility and Diminishing Marginal Utility==
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