An exceptional demand curve can result from

JAMB Economics 2024 123 views
Source: JAMB · 2024

An exceptional demand curve can result from

  1. increase in price of raw materials
  2. increase in the size of the population
  3. expectation of future price increase ✓
  4. change in taste of consumer
Explanation

An exceptional demand curve slopes upward instead of downward. People buy more even as prices rise.

When buyers expect higher prices later, they rush to buy now. This creates more demand at higher prices.

Fear of future price increases can make people behave against normal demand patterns.

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