What causes an upward movement along a demand curve of a commodity?
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Answer:
Normally the demand curve sooper downwards.But there are some unusual cases in which demand curve slopes upwards.
Explanation:
A fall in price brings about a contraction of demand and a rise in price results in a extension of demand.Therefore the demand curve slopes upward from left to right.
Reasons for upward sloping demand curve:
- Giffen paradox
- veblen or demonstration effect
- ignorance
- speculative effect
- fear of shortage.
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