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Question
State with reason. Whether you ‘agree’ or ‘disagree’ with the following statement:
There are no exceptions to the law of Demand.
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Solution
No. The statement is false. The exceptions to the law of demand are :
- Changes in the prices of related goods
- Tastes and Preferences of the consumers
- Income of the consumer
- Changes in technology
- Changes in taxation policy
- Changes in price expectations of consumers.
The law of demand may not work in case of the above cases.
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