Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Law of demand states that there is a negative relation between the price and the quantity demanded of the commodity. According to you, which of the following option violates the law of demand?

Options:

Substitute goods

Complementary goods

Dipsomaniac 

All of the above

Correct Answer:

Dipsomaniac 

Explanation:

The correct answer is Option 3: Dipsomaniac

The law of demand states that there is an inverse relationship between the price of a commodity and the quantity demanded: as the price rises, the quantity demanded falls, and vice versa.

Let’s analyze the options:

  1. Substitute goods: For substitute goods, an increase in the price of one good may lead to an increase in the quantity demanded of the other substitute good, which does not violate the law of demand itself but represents a different demand response.

  2. Complementary goods: For complementary goods, an increase in the price of one good typically leads to a decrease in the quantity demanded for both the good and its complement, which is consistent with the law of demand.

  3. Dipsomaniac: This term refers to someone with a strong craving for alcohol. In this case, the individual might continue to demand alcohol even if prices rise, which would violate the law of demand for this individual due to their specific preferences or addiction.

Therefore, dipsomaniac represents a scenario where the law of demand might not hold true, as their demand might not decrease with increasing prices.