An exceptional demand curve can result from?

A. increase in prices of raw materials
B. increase in the size of the population
C. expectation of future price increase
D. change in taste of the consumer

Correct Answer: Option C

C. expectation of future price increase

Explanation

A normal demand curve (which when graphed goes down and to the right) shows that when prices go up, the amount of a good that is demanded goes down. Examples are when the price of gas goes up, people buy less of it and do less driving. … An exceptional demand curve is one wherein the opposite occurs. it is a demand curve rising upwards showing that people buy more when the prices go up. the following are the reasons for an exceptional demand curve;

• Inferior goods/ Giffen goods
• Goods having prestige value
• Price expectation
• Fear of shortage
• Change in income
• Change in fashion
• Basic necessities of life