The demand curve for goods of ostentation is usually

Step 1: Analyze the question The question asks about the shape of the demand curve for "goods of ostentation." These are goods bought mainly to show off wealth or status, such as luxury cars, designer jewellery, and expensive aso-ebi fabrics. Economists call them Veblen goods, after Thorstein Veblen, who described conspicuous consumption.

Step 2: Explain the concept

• For normal goods, the law of demand applies: as price rises, quantity demanded falls. The demand curve slopes downward (negatively sloped).
• For goods of ostentation (Veblen goods), the high price is part of the appeal. A higher price makes the good more prestigious, so people want it more. A lower price makes it look "common," so demand falls.

Step 3: Work through the solution

• Price rises, so prestige rises, so quantity demanded rises.
• Price and quantity demanded move in the same direction.
• A curve where both variables move together slopes upward from left to right, which is a positive slope.

Step 4: Check the other options

• A. Negatively sloped: this is the normal demand curve, not the one for ostentatious goods.
• C. Vertical: this means perfectly inelastic demand, as with life-saving drugs. It is not typical of ostentation goods.
• D. Horizontal: this means perfectly elastic demand, as in perfect competition. It does not apply here.

Answer: B. Positively sloped

Exam tip: Whenever you see "ostentation," "conspicuous consumption," "prestige goods," or "Veblen goods," think of positively sloped demand. Also remember Giffen goods, which are inferior goods with a positive slope, though for a different reason. Don't mix them up.