State and explain the two exception to the law of demand
Answers
There exists cause where demand may slope upwards instead of downwards from left to right.
In the case of Giffen goods:- Giffen goods (named after the economist Sir Robert Giffen) are very inferior goods for which demand increase as price rises and decrease as price falls. This applies to poor communities.. e.g. In Asia people’s stable food is rice. If price of rice was to fall, consumers may reduce their demand for rice or consume the same amount of rice.
Wilfykil answered the question on
March 6, 2019 at 06:04
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