A Veblen good is a type of consumer good that becomes more desirable as its price increases. This phenomenon is known as the Veblen effect, named after economist Thorstein Veblen, who first described it in his book "The Theory of the Leisure Class."

Veblen goods are often luxury items or status symbols, such as expensive cars or designer clothing. The high price of these goods signals to others that the person who owns them has a high level of wealth and status. As a result, people may be willing to pay more for these goods in order to signal their own wealth and status.

There are a few reasons why Veblen goods may become more desirable as their price increases. One reason is that people may believe that a high price indicates a product's quality or exclusivity. Another reason is that people may feel a sense of prestige or social status when they own a Veblen good that is perceived as expensive or hard to obtain.

It's important to note that Veblen goods are different from Giffen goods, which are a type of consumer good that becomes less desirable as its price increases. Giffen goods are typically necessities that make up a large portion of a person's budget, such as staple foods, and people will decrease their consumption of them as their price increases.

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