Question

State any two reasons of abnormal demand curve.

Answer 1

The reasons for the abnormal price curve are:

1. Articles of Distinction: The primary source of abnormal demand is the articles of distinction. Examples include jewels, diamonds, and high-end carpets. Even at high costs, wealthy individuals continue to desire these things.
2. Ignorance: Unaware consumers may purchase more of a good at a higher cost. Irrational buyers tend to buy more expensive items.