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Explain why demand curves slope downwards while supply curves slope upwards Mention the exception?
KarthikMBA
Demand curves slope down because as price decreases for goods, demand increases. Supply curves slope upwards because the higher the price, the more goods a supplier wishes to supply to the market.
There are two exceptions:
1. When a good is more fashionable at a higher price (like designer jeans) referred to as Veblen Goods.
2. Inferior goods for which there is no cheaper close substitutes referred to Geffen Goods.
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∙ 14y ago
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