Lev Lafayette wrote:

On Sat, January 18, 2014 9:30 pm, Tim Josling wrote:

...

For example, when customers take price to be a signal of quality, demand can go *up* when the price is increased. I experienced this during my consulting career when, after increasing my rate, the demand went up. Shops like jewelry shops and other outlets for status goods also tend to find demand can go up when the price is increased. http://en.wikipedia.org/wiki/Veblen_good

and especially...

http://en.wikipedia.org/wiki/Positional_good

I wonder if they are complicating the matter with their expectations; whilst the empirical demand curve ( number of items demanded versus price); as determined from market research say, is usually roughly 'hyperbolic'; if the demand curve is something else; so be it ! regards Rohan McLeod