Proving the Rule

A few days ago, Dave said:

Price theory says that if the price for a good rises, then the demand for that good must fall.

I can think of one exception: goods whose price is a signal of status. It's concievable that for some such goods, raising the price (within a certain range) could actually cause demand to rise. How many real-world examples of this can you think of, and does it explain any oddball economic phenomena that seem to depart from simple econ 101 logic?

Share this