HSC Science (General) 12th Board ExamMaharashtra State Board
It's free!


Create free account

      Forgot password?

View all notifications
Books Shortlist
Your shortlist is empty

Solution for There Are No Exceptions to the Law of Demand. - HSC Science (General) 12th Board Exam - Economics


Explain, with reasons, whether you Agree or Disagree with the following statement

There are no exceptions to the Law of Demand.


Disagree. The law of demand has certain exceptions. Some of such exceptions are listed below:
1. Giffen goods: These are extremely inferior goods. With a fall in price of the Giffen goods, their demand falls.
2. Emergency situations: In case of emergency situations such as war, curfew, natural calamities etc consumers purchase the commodities even at a higher price.
3. Articles of distinction: Articles such as diamonds, jewellery, etc. are accorded high prestige and status as these are very costly. Such articles enjoy a high demand because of their high price. Consequently, the demand for such goods share a positive relationship with price.

  Is there an error in this question or solution?


Solution for question: There Are No Exceptions to the Law of Demand. concept: Demand. For the courses HSC Science (General) , HSC Science (Electronics), HSC Arts, HSC Commerce (Marketing and Salesmanship), HSC Science (Computer Science), HSC Commerce