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Goods whose demand is proportional to price are called

  1. A
    inferior goods
  2. B
    Veblen goods
  3. C
    normal goods
  4. D
    exclusive goods

Solution & Step-by-step Explanation

Veblen goods are luxury items for which the demand increases as the price increases, because of their exclusive nature and appeal as a status symbol. This creates a direct upward-sloping demand curve proportional to price, defying the traditional law of demand.

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Goods whose demand is proportional to price are called
A
inferior goods
B
Veblen goods
C
normal goods
D
exclusive goods

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