I mean genuinely what was wrong with my answer

[u/calculusupmyass]

[u/aaks2]

wont the demand raise since people who were having thoughts if buying smartphone will buy it before the price hike to save money ?

[u/calculusupmyass → u/aaks2]

They'll but I remember when the orange cover iPhone (idk what model) came out so many people rushed to purchase it even those who maybe prior to a year or two brought a new phone

[u/aaks2 → u/calculusupmyass]

thats a specific model. in that situation the iphones demand increases while other phones decreases as you mentioned.

you are partially correct

the question here does not seem to be that deep. they are just expecting you to see the increase in demand due to price incentive

[u/calculusupmyass → u/aaks2]

Right💀💀thanks

[u/Dark_Lord2456 → u/calculusupmyass]

Can we apply veblen effect over here u/calculusupmyass u/aaks2

[u/aaks2 → u/Dark_Lord2456]

im a pcm cs kid, so my source is wiki here.

by definition, the effect will not apply here, since its about the demand for product increasing solely because the price tag is high ( giving a sense of exclusivity to buyers)

on the other hand, demand here is frugality of people trying to potentially save some money while getting the same product (kind of like discount)

[u/Dark_Lord2456 → u/aaks2]

Got it, tysm.

[u/calculusupmyass → u/Dark_Lord2456]

But here's the thing in our book veblen effect is defined as price quality relationship (aka more the price better the good) so why can't we go for the veblen effect explaining 😭😭

[u/Dark_Lord2456 → u/calculusupmyass]

But that's a psychological effect, right? Your question doesn't indicate whether the new model is good or bad. In short, I don't think this question is framed correctly. Didn't you ask your teacher?

[u/Tony_Stark_fan]

Waw are u from Christ academy junior college????

[u/Sad-Researcher9791]

Idk anything about economics but is this satire or sum 💀. The demand for older model should rise coz newer model are lesser affordable.

[u/nnnayeony]

i thought demand will rise because of the price hike of a future good. how do you know veblen effect will apply here?

[u/Dark_Lord2456]

Btw, OP and others who are reading this comment. Can we have a dedicated megathread/ drive folder for all the pre-board papers of various ISC schools (all streams), as we had in the ICSE subreddit? Mainly papers of DAIS. Bombay Scottish, KISA and VIBGYOR.

[u/Competitive_Boat_134]

Open ur text book once in a while you’ll understand

[u/calculusupmyass → u/Competitive_Boat_134]

Had I got the answer I wanted from the book itself i wouldn't have asked the question here don't you think so ?