Question

The price of eggs rise and yet it is observed that the demand for eggs is rising. Does that mean that the demand curve for eggs is upward sloping?

• A. True
• B. False

Answer 1

The correct option is B

False

False. Increase in demand for eggs may not be related to the increase in the price of eggs. Instead it may be related to income or expectations or seasonal change. When any other determinant of demand (other than the price of the commodity itself) changes, there is a shift in demand curve which has nothing to do with the law of demand.