Demonstration effect goods
Giffen goods
Future scarcity of goods
All of the above
Answer is Wrong!
Answer is Right!
The correct answer is: D. All of the above
- Demonstration effect goods are goods that are purchased because of the desire to emulate the consumption patterns of others. For example, people may buy luxury goods or designer clothes because they want to be seen as successful or affluent. In this case, the demand for these goods is not affected by changes in price, but rather by changes in the perceived social status of owning them.
- Giffen goods are goods for which the demand increases as the price increases. This is because these goods are often considered to be necessities, and people are willing to pay more for them even if the price is higher. For example, in times of famine, the demand for bread may actually increase as the price of bread increases, because people are willing to pay more to ensure that they have enough to eat.
- Future scarcity of goods can also lead to an exception to the law of demand. If people believe that a good will become scarce in the future, they may be willing to pay more for it now, even if the price is higher. For example, if there is a drought and people believe that there will be a shortage of food in the future, they may buy more food now, even if the price is higher.
In conclusion, all of the options listed in the question can lead to an exception to the law of demand.