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an exceptional demand curve can result from?

Economics
WAEC 2018

an exceptional demand curve can result from?

  • A. increase in prices of raw materials
  • B. increase in the size of the population
  • C. expectation of future price increase
  • D. change in taste of the consumer
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Correct Answer: Option C
Explanation

A normal demand curve (which when graphed goes down and to the right) shows that when prices go up, the amount of a good that is demanded goes down. Examples are when the price of gas goes up, people buy less of it and do less driving. ... An exceptional demand curve is one wherein the opposite occurs. it is a  demand curve rising upwards showing that people buy more when the prices go up. the following are the reasons for an exceptional demand curve;

Inferior goods/ Giffen goods

Goods having prestige value

Price expectation

Fear of shortage

Change in income

Change in fashion

Basic necessities of life


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WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts