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Basic Tools for Economic Analysis I | Week 15 Topics
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Basic Tools for Economic Analysis II | Week 23 Topics1 Quiz
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Theory of Demand | Week 34 Topics1 Quiz
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Theory of Supply | Week 44 Topics1 Quiz
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Theory of Production Possibility Curve I | Week 51 Topic
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Theory of Production Possibility Curve II | Week 64 Topics1 Quiz
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Theory of Cost I | Week 72 Topics
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Theory of Cost II | Week 83 Topics1 Quiz
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Revenue Concept | Week 92 Topics1 Quiz
Topic Content:
- Exceptional or Abnormal Demand Curves
- Goods of Ostentation
- Goods of Necessity
- Future Expectation / Fear of the Future Rise in Prices
- Giffen Goods or Inferior Goods
- Rare Commodities
While a normal demand curve slopes downward from left to right, there are some occasions when demands do not follow this rule, such demand curves are called “Exceptional or abnormal demand curves”. Factors responsible for abnormal demand curves are inferior goods, future expectations, social factors, etc.
See The Factors that Determine Demand for Commodities
Reasons for Exceptional Curves:
Reasons for Exceptional Curves are:
1. Goods of Ostentation:
For these goods, the higher the price the greater the quantity demanded. This is because as the price increases, those who have money tend to buy more because they feel that the possession of the commodity will show or increase their status. Examples are luxurious cars, Gold wristwatches, etc.
2. Goods of Necessity:
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