Explain the law of demand and its exceptions.
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In Economics, the law of demand states the fact that quantity that is demanded for a particular good or service rises as price starts falling down.
It also takes place with all other things being equal.
Hence, it can be easily made out that the law of demand is all about an inverse relationship between price as well as quantity that have been demanded.
Exceptions to the law of demand include Giffen and Veblen goods.
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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.
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