GCE Economics 2024 Objective — Question 10
Question 10 of 50 from the General Certificate of Education (GCE) Economics 2024 Objective paper, with the correct answer and a full explanation.
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The law of demand will not hold when
- A. A. a normal goods are involved
- B. B. size of the population changes
- C. C. rare commodities are involvedCorrect
- D. D. incomes of consumers increase
Explanation
The normal law of demand states that the higher the price of a commodity, the lower the quantity demanded and vice versa. However, for rare commodities such as luxuries or article of ostentations, the law will not hold i.e the demand for those goods is abnormal or exceptional.
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