Abnormal demand curve

• Demand for goods of ostentation/luxury goods

  • These are goods consumed for prestige eg. expensive cars and watches
  • The higher the price, the more exculsively it is sold and the more appealing it is to those who prefer it.
• Demand for habitual/addictive goods

  • Consumers will consume certain goofs at the same qty at any price because the goods have become addictive and one cannot do without them.
• Demand for inferior goods

  • Inferior goods are good that are assumed to be of lower quality compared to others available but satisfy the same wants.
  • Due to income limitations, the consumer has no other alternative but to consume those goods.
  • If the consumers lvl of income increases, the consumption/demand of inferior goods decreases. This is because they can consume goods they consider to be of higher value.
• Demand for giffen goods

  • Giffen goods are a special type of inferior goods that affect a small part of the very low income earners.
  • When prices of a good decrease , the demand for giffen goods will also decrease.
  • This is because the consumers can use the same saving on the commodity to buy another desirable good.
• Future expectation of price increase

  • If prices of a commodity are expected to increase , people will buy more of them.
  • If prices of a commodity are expected to decrease, people will buy less of them.