Elementary Theory of Demand — Economics STD 10 — Question
ICSE BoardEnglish MediumSTD 10EconomicsElementary Theory of Demand2 Marks
Question
Briefly explain two exceptions to the law of demand.
✓
Answer
The law of demand does not apply to Giffen goods. A fall in the price of Giffen goods tends to reduce its demand and a rise in its price tends to extend its demand. The law of demand does not operate when the consumers think that high priced goods are always superior in quality.
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