Question on: JAMB Economics - 2002
One of the reason for an exceptional demand curve is the?
A
expectation of a future change in price
B
availability of credit facilities
C
change in the price of the commodity
D
availability of substitutes
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Correct Option: A
The exceptional demand curve, which slopes upwards, occurs in specific situations where the normal law of demand doesn't hold. One of the main reasons for this is the expectation of a future price change. If consumers expect the price of a good to increase in the future, they may increase their current demand for it, even if the current price is high. This leads to an upward-sloping demand curve.
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