An exceptional demand curve slopes
An exceptional demand curve slopes
A: Upward to the left
B: Downward to the right
C: Upward to the right
D: Horizontally
Normally demand curve slopes downward showing higher price reduces demand. Exceptional demand curve slopes upward to the right as in case of Giffen goods. These are inferior goods where demand rises with price due to lack of substitutes. For example in poor communities rising price of staple food may increase its demand as people cut expensive alternatives. This unusual case is important in economic theory.