Page 4 - Lesson Note 6

The consumers demand more due to fear of further rise in prices. For example, during emergencies like
war, famines, etc., consumers demand goods even at higher prices due to fear of shortage and general
insecurity.

4. Ignorance:
Consumers may buy more of a commodity at a higher price when they are ignorant of the prevailing prices
of the commodity in the market.

5. Fashion related goods:
Goods related to fashion do not follow the law of demand and their demand increases even with a rise in
their prices. For example, if any particular type of dress is in fashion, then demand for such dress will
increase even if its price is rising.

6. Necessities of Life:
Another exception occurs in the use of such commodities, which become necessities of life due to their
constant use. For example, commodities like rice, wheat, salt, medicines, etc. are purchased even if their
prices increase.

7. Change in Weather:
With change in season/weather, demand for certain commodities also changes, irrespective of any change
in their prices. For example, demand for umbrellas increases in rainy season even with an increase in
their prices. It must be noted that in normal conditions and considering the given assumptions, ‘Law of
Demand’ is universally applicable.