Goods like exclusive designer clothes carry with them prestige value linked to their price.  As a result, some people demand more of such goods as the price increases. For those people, such goods are Giffen goods.

Answer the following statement true (T) or false (F)

False

Rationale: These are luxury goods that are composed of both the physical good as well as the prestige value associated with it. When price increases prestige value, the nature of the good changes when price increases -- but the good itself is still a normal good in the sense that, were the prestige value to stay constant, an increase in price leads to less quantity demanded.