Question
In the post-COVID-19 era and with the government stimulus package, we are now in a demand economy.However, there are two exceptions to the law of
In the post-COVID-19 era and with the government stimulus package, we are now in a "demand" economy.However, there are two exceptions to the law of demand - the Veblen and Giffen theorems.These theorems explain the price sensitivity of two consumers. One that is highly price sensitive and the other that is not as price sensitive.What are the underpinnings of these theorems? Using two distinctive products or services, explain in full (also graphs are welcomed) the theorems of Veblen and Giffen.Which of the two products or services you have chosen is more price elastic (consider the theory of elasticity)
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