{"id":2022,"date":"2019-07-28T08:32:46","date_gmt":"2019-07-28T08:32:46","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2022"},"modified":"2019-07-28T08:32:46","modified_gmt":"2019-07-28T08:32:46","slug":"exceptions-of-law-of-demand","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/","title":{"rendered":"EXCEPTIONS OF LAW OF DEMAND"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg 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href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/#EXCEPTIONS_OF_LAW_OF_DEMAND\" title=\"EXCEPTIONS OF LAW OF DEMAND\">EXCEPTIONS OF LAW OF DEMAND<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/#EXCEPTIONS_OF_LAW_OF_DEMAND-2\" title=\"EXCEPTIONS OF LAW OF DEMAND\">EXCEPTIONS OF LAW OF DEMAND<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/#VEBLEN_GOODS_OR_ARTICLES_OF_DISTINCTION\" title=\"VEBLEN GOODS OR ARTICLES OF DISTINCTION\">VEBLEN GOODS OR ARTICLES OF DISTINCTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/#INFERIOR_GOODS\" title=\"INFERIOR GOODS\">INFERIOR GOODS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/#IGNORANCE_OF_CONSUMER\" title=\"IGNORANCE OF CONSUMER\">IGNORANCE OF CONSUMER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/#ABNORMAL_CIRCUMSTANCES\" title=\"ABNORMAL CIRCUMSTANCES\">ABNORMAL CIRCUMSTANCES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/#GIFFEN_GOODS\" title=\"GIFFEN GOODS\">GIFFEN GOODS<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"exceptions-of-law-of-demand\"><span class=\"ez-toc-section\" id=\"EXCEPTIONS_OF_LAW_OF_DEMAND\"><\/span><strong>EXCEPTIONS OF LAW OF DEMAND<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p>Demand is that specific quantity of a commodity which the consumer purchases at a specific price during a specified time period.<\/p>\n\n\n\n<p class=\"has-luminous-vivid-amber-background-color has-background\"><strong>ACCORDING TO FERGUSON<\/strong><\/p>\n\n\n\n<p>\u201cDemand refers to the quantities of commodity that the consumers are able and willing to purchase at each possible price during a period of time, other things being equal.\u201d<\/p>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"exceptions-of-law-of-demand-1\"><span class=\"ez-toc-section\" id=\"EXCEPTIONS_OF_LAW_OF_DEMAND-2\"><\/span>EXCEPTIONS OF LAW OF DEMAND<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p class=\"has-medium-font-size\">Exceptions of <a aria-label=\"law of demand (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/law-of-demand\/\" target=\"_blank\" rel=\"noreferrer noopener\">law of demand<\/a> state the areas where law of demand does not apply. The law of <a aria-label=\"demand (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/demand\/\" target=\"_blank\" rel=\"noreferrer noopener\">demand<\/a> fails when any of its assumption does not gets fulfilled. The main exceptions of law of demand are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/Slide6-3.jpg\" alt=\"EXCEPTIONS OF LAW OF DEMAND\" class=\"wp-image-2024\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/Slide6-3.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/Slide6-3-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/07\/Slide6-3-768x576.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><figcaption>EXCEPTIONS OF LAW OF DEMAND<\/figcaption><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"veblen-goods-or-articles-of-distinction\"><span class=\"ez-toc-section\" id=\"VEBLEN_GOODS_OR_ARTICLES_OF_DISTINCTION\"><\/span>VEBLEN GOODS OR ARTICLES OF DISTINCTION<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Such commodities which are considered as symbol of status and known as Articles of Distinction. This exception was first explained by the <strong>American Economist Veblen<\/strong>. That is why; these articles or goods are known as Veblen goods. Such commodities are generally consumed by the rich. The higher the price of these goods, the more will be their demand and vice versa. This makes the demand curve slopes upward.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"inferior-goods\"><span class=\"ez-toc-section\" id=\"INFERIOR_GOODS\"><\/span>INFERIOR GOODS<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The law of demand applies only to the normal goods. This law does not apply to the inferior goods. Inferior goods are those goods which are relatively cheap in nature. If the prices of these goods rise, their demand also rises. And if the price of these goods decreases, their demand falls.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"ignorance-of-consumer\"><span class=\"ez-toc-section\" id=\"IGNORANCE_OF_CONSUMER\"><\/span>IGNORANCE OF CONSUMER<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Many times, the consumer thinks that the cheap commodity is inferior commodity. Hence the consumers purchase less if its price is low. On the contrary, if the price rises, the consumer takes it as superior in quality and purchases more of it. This makes the demand curve slopes upward and law of demand fails.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"abnormal-circumstances\"><span class=\"ez-toc-section\" id=\"ABNORMAL_CIRCUMSTANCES\"><\/span>ABNORMAL CIRCUMSTANCES<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The law of demand does not apply in abnormal circumstances like war, floods, earthquake etc. In such circumstances, the demand for necessary commodities rises even though their price is higher. On the other hand, the demand for other than necessary commodities falls even though their price is low.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"giffen-goods\"><span class=\"ez-toc-section\" id=\"GIFFEN_GOODS\"><\/span>GIFFEN GOODS<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The concept of these goods was given by <strong>Sir Robert Giffen<\/strong>. At his name, these goods are known as Giffen Goods. Giffen goods are highly inferior goods, showing a very high negative income effect. As a result, when price of such commodities falls, their demand also falls, even when they happen to be relatively cheaper than other goods. This is popularly known as \u2018Giffen Paradox\u2019. &nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">In short, it can be said that the law of demand applies only when all its assumption holds good. Otherwise it fails.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/demand\/\">Theory of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-demand\/\">Law of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/demand-function\/\">Demand Function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/\">Exceptions of law of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\">Elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/change-in-demand\/\">Change in demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/price-elasticity-of-demand\/\">Price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-law-of-demand-and-elasticity-of-demand\/\">Law of demand Vs Elasticity of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/\">Factors affecting price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/production-function\/\">Production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-short-run-long-run-production-function\/\">Short run vs long run production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-variable-proportions\/\">Law of variable proportions<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-demand\/\">Types of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/managerial-economics\/\">Managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/characteristics-of-managerial-economics\/\">Characteristics of managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-managerial-economics\/\">Scope of managerial economics<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/utility-analysis\/\">Utility analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-marginal-utility\/\">Law of diminishing marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-equi-marginal-utility\/\">Law of equi marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/\">Consumers Equilibrium<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/indifference-curve-analysis\/\">Indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium-using-indifference-curve-analysis\/\">Consumer equilibrium using indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-tp-ap-and-mp\/\">Relationship between TP, AP and MP<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-increasing-returns\/\">Law of increasing returns<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-returns\/\">Law of diminishing returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-constant-returns\/\">Law of constant returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/returns-to-scale\/\">Returns to Scale<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/economies-and-diseconomies-of-scale\/\">Economies and diseconomies of scale<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\">Concept of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-ac-and-mc\/\">Relationship between AC and MC<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/traditional-theory-of-cost\/\">Traditional theory of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/modern-theory-of-cost\/\">Modern theory of costs<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explicit-vs-implicit-costs\/\">Explicit vs Implicit costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue\/\">Revenue<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-competition\/\">Perfect competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-meaning\/\">Monopoly<\/a>&nbsp;<\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/price-discrimination\/\">Price discrimination<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-perfect-competition-and-monopoly\/\">Difference between perfect competition and monopoly<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-and-monopolistic-competition\/\">Perfect Vs Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-and-monopolistic-competition\/\">Monopoly and monopolistic competition<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/\">Product differentiation strategy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopolistic-competition\/\">Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/national-income-in-india\/\">National Income in India<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/measurement-of-national-income\/\">Measurement of national income in India<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/consumption-function\/\">Consumption function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/keynesian-psychological-law-of-consumption\/\">Keynes Psychological law of consumption<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"266\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg\" alt=\"Exceptions of Law of demand\" class=\"wp-image-787\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-300x78.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-768x199.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1536x398.jpg 1536w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Exceptions of Law of demand<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>EXCEPTIONS OF LAW OF DEMAND Demand is that specific quantity of a commodity which the consumer purchases at a specific price during a specified time period. ACCORDING TO FERGUSON \u201cDemand refers to the quantities of commodity that the consumers are able and willing to purchase at each possible price during a period of time, other&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;EXCEPTIONS OF LAW OF DEMAND&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2023,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[92],"tags":[94,96,97],"class_list":["post-2022","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-micro-economics","tag-demand","tag-demand-function","tag-law-of-demand"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2022"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2023"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}