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In economics, a “Veblen good” is an item that people buy in

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In economics, a “Veblen good” is an item that people buy in [#permalink] New post   09 Dec 2018, 02:42
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In economics, a “Veblen good” is an item that people buy in greater quantity when the price goes up. According to the law of supply and demand, when the price of an ordinary item goes up, demand drops, i.e., people buy fewer of them. A Veblen good is a luxury item to which status is attached, such as a designer outfit or luxury car. As the price of such an item increases, its prestige increases, which makes the item that much more desirable. Therefore, as the price increases, the demand also increases, and more of these items are sold.


In the argument, the two portions in boldface play which of the following roles?

A. The first is a piece of evidence supporting the main conclusion; the second is the main conclusion.
B. The first is a view that the author opposes; the second is the main conclusion.
C. The first is a prediction; the second gives evidence for this prediction.
D. The first is a general rule, the violation of which seems to indicate a paradox; the second is the resolution of that apparent paradox.
E. The first is an ironic description of what could happen in the marketplace; the second is a more realistic description of what actually happens.

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D
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kruttikaaggarwal
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Re: In economics, a “Veblen good” is an item that people buy in [#permalink] New post   11 Dec 2018, 11:37
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Carcass wrote:
Dear Sir,

when you pick the wrong answer, I do know that for a student is natural to say: for me the answer is X and the OA is wrong.

My suggestion is to ask here on the board: why Did I pick it wrong?? where is the flaw in my strategy ?? and so on

back to the question

Therefore is a transition word that always announces the conclusion of the entire argument. In this case, the question was not so difficult.

The second bold is just this: the overall conclusion.

Hope this helps.


I am sorry if you are offended but I never said or meant that OA is wrong or I am right.

I just explained what my thoughts on the answer were and asked for an explanation on why it is wrong/explanation for the right answer. I thought that's what forums are for.

Kindly understand that we do not always understand the passage, questions and options completely. We all here are from different regions and fields. What may be simple and easy for one might be difficult for someone else. Sometimes even having OA does not explain its justification. Thats why I use forums to get a different perspective on the answers. In this case, I simply did not understand what was D really saying and asked about it.
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maile90
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Re: In economics, a “Veblen good” is an item that people buy in [#permalink] New post   15 Dec 2018, 10:53
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For this type of bold faced question, I always try to find out:
1/the conclusion
2/evidence
3/argument against
4/overall tone of the passage
before answering the question. By the time I read the answer choices, I would not be confused by the right and almost right answer choice.

D. The first is a general rule, the violation of which seems to indicate a paradox; the second is the resolution of that apparent paradox.
The argument's overall message is to describe Veblen good, an exception to general rule of economics, as price goes up, demand drops. So the first bold sentence should state that rule, whose ratification violated by Veblen's paradoxical as price goes up, demand stays up. Second bold face sentence apparently concluded that paradox can happen, explained by a couple of sentences before.
E. The first is an ironic description of what could happen in the marketplace; the second is a more realistic description of what actually happens.
From the tone of the passage, the rule of the marketplace was just cited as a matter of fact, not ironically. The rule of general economics is actually more realistic than the Veblen good's case, which rarely happens in realistic market. The second bold face sentence, to me, just sounds like what could happen
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Re: In economics, a Veblen good is an item that people buy in [#permalink] New post   15 Apr 2023, 05:28
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In D

According to the law so D is correct.

E is incorrect because what is depicted is NOT an ironic representation of what in reality happens.

Ironic means sarcastic but is used when you want to describe something on the opposite side of what is happening but is used to suscitate amusement or something fun
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Re: In economics, a “Veblen good” is an item that people buy in [#permalink] New post   11 Dec 2018, 07:26
I thought the answer would be E. It says what should happens vs what actually happens.

Why is it D, can someone please explain? I get the first one is general rule. But how is the second sentence a resolution to the paradox of violating the general rule?
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Re: In economics, a “Veblen good” is an item that people buy in [#permalink] New post   11 Dec 2018, 11:10
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Dear Sir,

when you pick the wrong answer, I do know that for a student is natural to say: for me the answer is X and the OA is wrong.

My suggestion is to ask here on the board: why Did I pick it wrong?? where is the flaw in my strategy ?? and so on

back to the question

Therefore is a transition word that always announces the conclusion of the entire argument. In this case, the question was not so difficult.

The second bold is just this: the overall conclusion.

Hope this helps.
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Re: In economics, a “Veblen good” is an item that people buy in [#permalink] New post   11 Dec 2018, 12:39
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No worries.

Maybe I said in the wrong way. My fault. sorry :)

what I mean is this: considering that you tend to say: the answer should be X and instead is Y the strategy you should follow is this : what went wrong ??

where is the flaw ?? how can I break the argument far better to understand it in its intimacy ??

I would already redirect you to my guide but unfortunately is not ready, yet.

But we are here to help you 110% :wink:

Regards
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Re: In economics, a Veblen good is an item that people buy in [#permalink] New post   15 Apr 2023, 03:59
In option E what is meant by "ironic description". I understood it like actual happening in market is different from what is mentioned above. This is the reason I marked D.

Am I right ?

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