Law of demand in economics with example and its exceptions
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Law of demand, states that keeping other factors constant there is an inverse relationship between price and quantity demanded.
Eg. When price of Sugar rises from 10 to 15 people decrease it's demand.
Exceptions are giffen goods, necessities, status symbol goods etc.
Eg. When price of Sugar rises from 10 to 15 people decrease it's demand.
Exceptions are giffen goods, necessities, status symbol goods etc.
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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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