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Question

Situation where an increase in the price of a commodity takes place along with an increase the quantity demanded, may occur due to _________________.

A
normal law of demand
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B
expectations of further rise in prices
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C
better quality of the product
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D
both (b) and (c)
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Solution

The correct option is B both (b) and (c)
Increase in price of the commodity along with an increase in the quantity demanded does not follow the normal law of demand. It is due to changes in factors other than price which favourably affect demand, such as, expectations of further rise in prices, better quality of product, increase in the income of the consumer, etc.

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