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What are the exceptions of Law of Demand ?

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The reasons responsible for this are as follows : 

(i) Giffen goods : There is a positive relationship between price of commodity and demand of Giffen goods (such as Maize, barley, etc.), which means that there is a fall in demand of giffen goods with the fall in its price and vice-versa. As the price of Giffen goods decreases consumer shift the resourses from Giffen goods to normal or superior goods and as a result demand for Giffen goods decreases even with the decrease in their prices. 

(ii) Prestegious goods (Goods of distinction) : There are many consumers which purchases certain goods only for their prestige or to use those goods as to show their status (as a status symbol).For eg. Jwellery, precious stones, old paintings, etc. As the price of these goods increases they become more prestigious and that's why these type of consumers increase their demand and as the price of these goods decreases they become less prestegious or becomes a normal goods and that's why they will decrease their demand. 

(iii) Necessay Goods : The demand of necessary goods is less affected by the change in price, such as demand of food grains, salts, demand of medicine for patient, etc. The demand of these goods does not decrease with the rise of price and demand of these goods does not increase even with the fall in their price. 

(iv) Addiction : When the consumer becomes an addict of using a particular commodity or particular trademark or particular brand then his demand remains unaffected even with the change in its price because he require a definite amount at definite time. 

(v) Expectation of further change in price in near future : As price of the commodity rises and there is expectation of further rise in price in near future then consumer will demand more units of the commodity presently even with the increase in its prices (because the consumer prefers to purchase the commodity when the commodity is cheaper). But if the price of the commodity falls and there is expectation of further fall in price in near future, then the consumer will decrease the demand presently even with the decrease in prices.  

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