Knock out the demand myths

Exercise and reference answers

Questions

1. Question

   Three of these claims about demand are false.

   Choices

   1. Item

      Giffen goods defy the law of demand

      Correct

      Yes

   2. Explanation

      They are coarse grains: bajra, low quality rice, wheat

      Item

      Giffen goods are luxury jewels

   3. Explanation

      That is the snob effect, the bandwagon's opposite

      Item

      Bandwagon means avoiding the crowd

   4. Explanation

      It holds only 'other things being equal'

      Item

      The law of demand needs no assumptions

Instructions

Tap each claim you can prove false. The true one stays put.

Explanation