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If demand curve is found to be positively sloped , what it could be due to ? Give your answer in terms of nature of the commodity , income effect and substitution effect . |
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Answer» Positively sloped demand curve violates the law of demand . It is found in case of giffen goods . These are those inferior goods in case of which income effect is negative and greater than substitution effect , so that net effect points to a positive relation between price and quantity demanded of the commodity . |
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