Solution:Economists typically employ Veblen's name in making two kinds of modification to their essentially individualistic and utilitarian model of consumer behaviour. The first, which is more specifically called the Veblen effect, involves recognizing that the price of a commodity is a culturally significant symbol in its own right, and not merely an index of economic worth or utility. The second, which embraces what are called the 'bandwagon' and 'snob' effects, involve recognition of the fact that an individual's consumption of goods is affected by the behaviour of other consumers. Either an individual's demand for goods or services is increased by the fact that others are seen to be consuming them (bandwagon), or decreased by the fact that others are consuming them (snob).