Livestock Economics, Marketing and Business Management

EXCEPTIONAL DEMAND CURVE

• The demand curve instead of sloping downwards may rise upwards when there is an increase in price showing that more quantity would be demanded when the price rises.
• This tendency was first observed by Sir Robert Giffen in 19th Century.
• Hence this exceptional process is called Giffen paradox.
• The reason for such exceptional behaviour may be
  • Fear of scarcity of goods in future
  • Possession of a goods conferring distinction in the society.