which of the following is not a reason for abnormal demand
-
price of the commodity
- goods of ostentation
- giffen goods
- rare commodity
The correct answer is: A
Explanation
Abnormal demand refers to demand patterns that deviate from typical behavior, often influenced by specific factors, such as:
i. Goods of ostentation: These are luxury items sought after for their status, leading to demand that doesn't follow normal consumption patterns.
ii. Giffen goods: These are a unique category of inferior goods where demand increases as prices rise, defying standard economic expectations.
iii. Rare commodities: Scarcity can drive abnormal demand, as consumers often place higher value on items that are perceived as rare or hard to obtain.
The option that is not a reason for abnormal demand is A. price of the commodity.