Violations of the law of demand are assumed to occur
A)regularly.
B)only when goods are Giffen goods.
C)only when the substitution effect dominates the income effect.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Giffen goods are an exception to the law of demand, where an increase in price leads to an increase in quantity demanded due to the strong income effect outweighing the substitution effect.

Violations of the Law of Demand Are Assumed to Occur