New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following goods do not follow the law of

    demand?
    A Normal goods Correct Answer Incorrect Answer
    B Giffen goods Correct Answer Incorrect Answer
    C Complementary goods Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    As per Law of demand, demand varies inversely with price, other thing being equal i.e. rise in the price of a good or service is followed by a reduction in the quantity demanded and a fall in price would lead to rise in demand of the good/service. The demand curve is therefore upward sloping. Giffen or inferior goods are an exception to the law of demand and for such goods the demand extends as the price rises. The demand curve of giffen goods is upward sloping.

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