Question

Questions State the law of demand and give reasons why some goods may not follow this law and explain?
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Answer 1

Answer:

Explanation:

No. The statement is false. The exceptions to the law of demand are:

Changes in the prices of related goods

Tastes and Preferences of the consumers

Income of the consumer

Changes in technology

Changes in taxation policy

Changes in price expectations of consumers.

The law of demand may not work in case of the above cases.

Answer 2

Answer:

The law of demand is one of the most fundamental concepts in economics. ... The law of demand states that quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded. This occurs because of diminishing marginal utility.