In economics, the demand for a product is considered downward sloping. This implies that quantity demanded increases when price decreases. Is this always true? Name some products for which the quantity demanded remains unchanged regardless of the price. Also, mention some products for which quantity demanded increases when the prices increase. Give appropriate examples and justify your answer.
Law of demand does not hold true in all cases. Inverse relationship between price and quantity demanded does not exist in some of the cases.
Perfectly inelastic goods have constant demand. Quantity demanded does not vary with price changes in such cases. If we consider the case of insulin, which is a necessity for diabetic patients, demand does not vary in response to price changes. Quantity demanded in such a case is not likely to ...
The solution discusses the instances where law of sloping downward demand does not seem to be true. The solution explains the concept with the help of suitable examples.