Question

      For which of the following goods is the demand curve

    upward sloping ?
    A Normal goods Correct Answer Incorrect Answer
    B Veblen goods Correct Answer Incorrect Answer
    C Giffen goods Correct Answer Incorrect Answer
    D Both b) and c) Correct Answer Incorrect Answer

    Solution

    Both Giffen goods and Veblen goods are special cases of goods where the demand for the good is different from what we would intuitively expect. Whereas most goods are normal good, meaning that we buy more of them when the price decreases, this is not the case for Giffen and Veblen goods. Thus, both goods are exceptions to the law of demand

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