Question

Explain the situations in which the demand curve slopes upward from left to right.

Answer 1

Law of demand is considered to be valid in most of the situations. But in actual practice, law of demand may not operate in many cases. Many a time, we observe that more quantity of a commodity is demanded at a higher price, and less of it is purchased at a lower price. In these situations, the inverse relationship between price and the amount purchased does not hold good. These situations are known as exceptions to the law of demand. In such situations, demand curve may not have a negative slope; it may be sloping upward, as shown in Figure.