WAEC - Economics (2015 - No. 8)
which of the following is not a reason for abnormal demand
price of the commodity
goods of ostentation
giffen goods
rare commodity
Spiegazione
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.