Answer to Question #247126 in Economics of Enterprise for Sadam Dine

Question

State the lows of demand and discuss with the cases in which this low is to be violated.

Answer 1

The law of demand states that quantity purchased varies inversely with price. That is, the higher the price, the lower the quantity demanded.

There are certain exceptions to the law of Demand for specific products. Examples are Giffen goods, Veblen goods, income change of the family, luxury items; all these concepts do not follow the law of Demand.