Question

Write short notes on exceptions to the law of demand.

Answer 1

answer

$\: exception \: law \: of \: demand \:$

exception to law of demand doesn't have a negative relationship between price and commodity they show positive relationship there's a positive slope

example:-

1)

$giffen \: goods$

2)

$future \: expectations$

@AnanyaRajput ☺

Answer 2

Exceptions to the law of Demand :-

Giffen Goods

Veblen Goods.

Extra Information :-

DEMAND -

Demand is the quantity of certain goods which are desired by the consumers from the market.

THE LAW OF DEMAND -

This is a inverse relationship between the prices of goods and it's demand . If the price of the goods rise then their demand will fall . In other words , The higher the price , The lower the quantity demanded. Here, Demand curve is downward from left to right .

Exceptions to the law of Demand :-

There are two exceptions to the law of demand, Giffen goods and Veblen goods.

Giffen Goods :- Giffen goods are the goods for which the demand increases as the price increases and demand falls when the price decreases. Example - Essential food staple - Rice.

Veblen Goods :- These goods are kind of luxury goods for which the demand increases as the price increases. These goods are like status symbol. Example - Jewelry, Costly cars.