Discuss any two exceptions to the law of demand.

1.	Discuss any two exceptions to the law of demand.
Answer» (1) Giffen Goods : The demand for giffen goods decreases with the fall in its price and increases with the rise in its price. This situation is known as Giffen paradox. Ex. Coarse grain, Coarse cotton cloth, etc. (2) Necessities : There are some goods which are necessities of the modern life. A minimum quantity of these goods has to be purchased by the consumers irrespective to there prices. Such as foodgrain, cloth, medicine, petrol etc.

Answer»

(1) Giffen Goods : The demand for giffen goods decreases with the fall in its price and increases with the rise in its price. This situation is known as Giffen paradox. Ex. Coarse grain, Coarse cotton cloth, etc.

(2) Necessities : There are some goods which are necessities of the modern life. A minimum quantity of these goods has to be purchased by the consumers irrespective to there prices. Such as foodgrain, cloth, medicine, petrol etc.

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Discuss any two exceptions to the law of demand.

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