The Veblen effect refers to the phenomenon in which the demand for a product increases as its price increases, contrary to the typical law of supply and demand. This effect is driven by the perception that a higher price equates to higher quality or exclusivity, leading consumers to purchase the product as a status symbol or to signal their wealth and social status. Coined by economist Thorstein Veblen, this concept highlights the role of conspicuous consumption in shaping consumer behavior and market trends. In essence, the Veblen effect challenges the traditional notion that price and demand have an inverse relationship, showcasing the power of social and psychological factors in driving consumer choices.