The law of demand may be violated:
A)often in the case of many food products
B)only when goods are Giffen goods
C)typically when the good has a high price elasticity
D)in all of the above cases

Question

Quizplus · Accepted Answer

The law of demand, which states that quantity demanded decreases as price increases, may be violated in the case of Giffen goods. Giffen goods are inferior goods for which demand increases as the price increases, due to the strong income effect of a price increase that outweighs the substitution effect.

The Law of Demand May Be Violated