Question 8
Theory of DemandAn exceptional demand is one in which the
- A.supplier sells all that he takes to the market
- B.consumers do not buy from the market
- C.quantity demanded falls as price falls
- D.purchase of services and not products is considered
- E.quantity demanded and price move in opposite directions
Show the answer and explanation
Answer: C (quantity demanded falls as price falls)
Explanation
Exceptional demand goes against the law of demand: quantity demanded falls when price falls (and rises when price rises).