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Do You Agree with the Following Statement? Give Reason There Are No Exceptions to the Law of Demand. - Economics

Sum

Do you agree with the following statement? Give reason

There are no exceptions to the law of demand.

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Solution

No, 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.  
Concept: Demand Curve and Its Slope
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APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 3 Demand Analysis
Exercise | Q 1 | Page 24
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