Several consumers of goods in parts of Upper West Region including Wa, Wa East and Jirapa have been drawn into Veblen Effect due to several circumstances.

An economic indicator is a macroeconomic statistic used to judge the overall health, performance, and future direction of an economy.

Speaking to some Traders in Wa Town, they indicated that goods have low demand when prices are reduced because several people assume they are of less quality, they believe the prices are down because there is likely going to more price reduction.

Others use the situation as a season to show off, command value and respect for being able to acquire expensive resources or products. A clear example of products or goods triggered by Veblen Effect are Motorbikes, Clothes, Building Materials, Plots of Land.

Some areas have become very expensive to acquire for real estate purposes because there is a believe such places are inhabited by people with higher status, some of these areas include Bamahu, Sombo, Wa Poly Street and Kperisi.

Currently motorbikes are rated by the price they are sold, the cheaper the bike the more the assumption it’s not up to standard, but who measures the standard? Is the Ghana standards Authority (GSA) not up and doing.

The Veblen effect is an economic anomaly where the demand for a product increases as its price rises, defying the standard law of demand.

Source: Upper West Media App