Question 8
Theory of DemandWhich of the following is not a reason for abnormal demand?
- A.Price of the commodity
- B.Goods of ostentation
- C.Giffen goods
- D.Rare commodity.
Show the answer and explanation
Answer: A (Price of the commodity)
Explanation
The price itself is what the law of demand relates to; Giffen and ostentation goods are the exceptions.