Saturday, July 21, 2018

Exceptions to law of demand..

Normally law of demand defination tells when the price of good increases/rises the consumption/buying power of the individual of products increases.similarly as the price falls the people buy more of it,other things keeping constant.                                                                                For example:As the price of apple increases from 30 to45 rs so,the demand for that product decreases due to increase in price of the good .                                                                                                         As one of the exceptional goods to law of demand is giffen goods as in case of giffen products(essential goods) demad increases as the price increases.It voilates the law of demand as essential goods like rice,and vegetables like pulses...etc 
  •  Lets take a real senario where law of demand wont be followed:                                                                                                                                                                                                            In a residential campus there is a single xerox shop/single grocery store which comes under college premises and college was situated in outskirts of the city where u cannot go anywhere so,any item which you will be taken from the grocery will be costly compared to outside,even though you will purchase the product without any question. this is exceptioal to law of demand where even though price of goods/products high demand in purchasing also will be high.!!                                                                      

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