What are the exceptions of law of demand? explain them.
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Exceptions to the Law of Demand. Giffen Goods: Giffen goods are the inferior goods whose demandincreases with the increase in its prices. ... Veblen Goods: Anotherexception to the law of demand is given by the economist Thorstein Veblen, who proposed the concept of “Conspicuous Consumption.”
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What are the exceptions of law of demand? explain them.
Following are the exceptions of the law of Demand..!!
The theory of giffen goods was propounded by Sir Robert Giffen. Giffen goods are those goods who's demand Falls with the fall in its price. For example, Bajra
These goods are very expensive goods and are used as status symbol. Their quantity demanded increases with increase in their price. For example, diamond
these goods are consumed by the buyer irrespective of the change in their price. For example, salt
The demand for goods in case of emergencies is not affected by its price. For example, medicines
goods which are in habit and not affected by the change in their price. For example, alcohol, cigarettes, drugs e.t.c
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1. Giffen Goods= The theory of giffen Goods was given by Sir Robert giffen. giffen goods are those goods who demand falls in the fall of its price.
2. Necessity Goods = these goods are consumed by the buyer irrespective of the change in their price. Example = salt
3. Emergency goods = the demand of goods in case of emergencies is not affected by its price, example = medicines
4. Gnob goods = these goods are very expensive goods and used as status symbol their quantity demanded increases with increase in their price, example = diamond.
5. Habitual Goods = goods which are in habit and not affected by the change in the price is called habitual goods for example alcohol, drugs e. t. c.
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