"Extremely low priced goods are an exception to the law of demand". - Explain
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"Extremely low priced goods are an exception to the law of demand"- It is true.
Explanation:
The law of demand states that is an indirect relationship between demand and the price of a good.
In other words when the price of any good increases, its demand decreases and vice-versa.
Items that are priced extremely low and are instrumental to the basic lives of people are an exception to the law of demand. This is because these goods are always in high demand. Even if the price increases nominally, the demand will still be the same as people are now addicted to using the same products.
Therefore, the price elasticity of low-priced goods is extremely low.
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