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An exceptional demand curve is:

A. Downward sloping

B. Upward sloping

C. Horizontal straight line

D. Vertical straight line

Correct Answer : B.


In some exceptional cases law of demand is violated. For example in the case of giffen goods, as the price of giffen goods rise then there demand will also rise. And in the case of commodities which are used as a status symbols (also known as Veblen goods), as the price of these goods rise then their demand will also rise. So in above exceptional cases, the demand curve will upward sloping from left to right like supply curve showing positive relationship between quantity demanded and price. This demand curve is also called exceptional demand curve}

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  2. Technological Progress (Invention) can be defined as:
  3. Variable cost includes the cost of:
  4. The relationship between AC and MC curves depend upon the behavior of:
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  9. Price elasticity of demand is best defines as:
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  12. The budget constraint equation of the firm is:
  13. Demand for a commodity is elastic when it has
  14. Indifference curves reflect:
  15. In respect of which of the following category of goods is consumers surplus highest?
  16. Who developed the concept of Representative Firm?
  17. The law of demand is most directly a result of:
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  19. If the price of product increases and in the result the demand for product B also increases then:
  20. A mixed economy is characterized by the coexistence of:
  21. The Lambda or Langrange Multiplier is a:
  22. The difference between the average total cost and average variable cost as output increases will:
  23. A loss bearing firm will continue to produce in the short run so long as the price at least covers:
  24. The minimization of costs subject to output requires equilibrium at the lowest:
  25. An effective price ceiling usually results in:
  26. If the commodity is inferior then:
  27. The ordinary demand curve is also called:
  28. Profits of a firm will be calculated taking into account the units produced and the difference between:
  29. When sales tax is imposed on monopolist, its:
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