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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