Demand Curve Can be Upward Sloping Also!!

We have learnt in class that the price has an inverse relationship with the quantity demanded. ceteris paribus.

However, there are exceptions to the rule..

In some cases, the quantity demanded sometimes might vary directly with price (unusual demand curves, more quantity will be demanded at a higher price).

When the price increases, quantity demanded will also increase!

The reason for this include:

It's called a Giffen's Paradox

The English economist Giffen came up with this idea

In the 19th century during the Irish Potato famine, people are very very poor.

If the price of basic foodstuffs such as bread, rice, corn, and potatoes increases, quantity demanded will also increase.

The reason is that as price rises, the higher price makes it impossible for consumers to purchase better quality foodstuffs.

They have no choice but to consume these poor quality foodstuff even though the price of these items has increased.

Could you think of other reasons as to why demand curve can be upward sloping?