Question

Define demand and explain law of demand and its exceptions

Answer 1

Law of Demand: Assumptions, Exceptions and Limitations. The law of demand states that, other things remaining the same, the quantity demanded of a commodity is inversely related to its price. ... Other things remaining the same, the amount demanded increases with a fall in price and diminishes with a rise in price.

Answer 2

Answer:

There are two exceptions to the Law of Demand. Giffen and Veblen goods are exceptions to the Law of Demand. However, they are extreme cases and can be quite difficult to prove. But economists generally agree that there are rare cases where the Law of Demand is violated.