Veblen Goods vs. Income Elasticity
The demand curve for Veblen goods is upward sloping. Thus, as price increases (decreases) the demand for Veblen goods increases (decreases). However, I am unable to find what is the effect of change in income on demand of Veblen good.
Veblen good is not an inferior good and thus I am assuming it is normal good (increase in income means increases consumption). Given that it is luxurious the increase in income causes more than proportionate increase in demand.
The Veblen good’s demand increases as the price goes up. However, what I find puzzling, couldn’t it be implied that decrease in income, reducing purchasing power, causes the good to be relatively more expensive? Therefore, it could be argued that decrease in income causes higher demand for the good?
I know I am probably overthinking ths but I would really like to understand it once and for all. I understand the basic intuition but I wasn’t able to find satisfactory answer to the effects of income change on Veblen goods.