Price effect

The price effect is the change in the quantity demanded of a good (or service) when its price is modified, while the rest of the variables remain constant (other prices, income or consumer preferences , among others). When the price of a good changes, the conditions in which a particular consumption basket was chosen change. Given the above, the user will … Read more

Snob effect

The snob effect occurs when the demand curve is positive. That is, when the relationship between price and demand is positive. The curiosity of the snob effect is that if the price increases, the demand increases. And vice versa, if the price falls, the demand falls. Unlike normal goods . The term snob refers to those people who imitate the behaviors … Read more