Discussion
Which of the following can be a reason for an exception to the law of demand?
Answer: B
An exception to the law of demand arises when a rise in price leads to a rise in the quantity demanded. This happens when buyers expect the price to rise further in future, so they buy more now at a higher price (as in the case of speculative demand). A large share of expenditure on a commodity is the case of a Giffen good only in a special sense, and increasing marginal utility and many substitutes are not reasons for a rising demand curve. The key gives expectation about future prices, option B.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development