Question

Find the odd word:

Exceptions to the Law of Demand:

Options

• Giffen’s paradox

• Prestige goods

• Price illusion

• Supply of labour

Answer 1

Supply of labour

Explanation:

• Giffen’s paradox, prestige goods, and price illusion are all exceptions to the Law of Demand, meaning that they cause demand to behave differently than the usual inverse relationship with price.
• Supply of labour is not an exception to the Law of Demand; it is related to the Labour Market and follows the backward-bending supply curve of labour, which is a different economic concept.