Giffen Goods

• In some cases, purchasing a luxury item can increase self-esteem and give a sense of belonging.
• Some people buy luxury goods as a form of retail therapy.
• Others reward themselves with a luxury item that they typically can't afford.

There, many people tend to fall further in love with the thing they’ve bought as its price rises, since they feel validated, and they like it less as the price falls, when they begin to doubt their decision to buy.This makes it very diffi cult to hold, and to buy more at ...

Demand shocks occur when the demand for products drops as people stop earning money. A tactic to fix this is to stimulate the economy. In 2008, Australia gave households cash and encouraged them to spend to jumpstart the economy.

In 2020, the problem is also a lac...