Introduction:

The term demand is different from desire, want; wish etc. in the language of economics the term demand has different meaning. Any want or desire will not constitute demand. Demand refers to the total or a given quantity of a commodity that are purchased by a consumer in the market at a particular price at a particular time. The exceptions of law of demand are.

The other aspects of demand are as follows.

• Demand is always at price
• It should be always expressed in terms of specific quantity
• It always created in the market
• It is relative to a person, place and time. Demand is desire to buy plus willingness to pay plus ability to pay.

Broadly speaking people buy more when price falls in accordance with the law of demand, but sometimes it may not work, sometimes it may be observed that with a fall in price demand also falls and with a rise in price demand also rises. This is paradoxical situation or contrary to the law of demand.

Exceptions to the law of demand:

1. Geffen paradox: A paradox is a foolish or absurd statement but it will be time, sir Robert Geffen an Irish economist with the help of his own example (inferior goods) disproves the law of demand. The Geffen paradox holds that demand strengthened with a rise in price or weekend with the fall in price. He gave the example of poor people of Ireland who were using potatoes and meat as daily food articles when the price of a potatoes declined people instead of buying greater quantity of potatoes, started buying more of meat superior goods thus the demand for potatoes declined in spite of fall in its price.
2. Bandwagon effect or demonstration effect: In this case consumption of few items is influenced by trend setters who influence the market. Hence the demand is conditioned by consumption of others, so price becomes a minor issue.
3. Veblen’s effect:  Veblen a noted American economist contends that there are certain commodities which are purchased by rich people not for the direct satisfaction but for their snob appeal or in case of such status symbol commodity. it is not the price which is important but a prestige conferred by that commodity on a person make him to go for it.
4. Fear of shortage: When serious shortage are anticipated by the people example during the war period. They purchase more goods at present even though the current prices higher.
5. Consumer’s illusion: If prices are high consumer may think that this quality of the product is also high and they go for it.
6. Fear of future rise in price: If people expect future hike in price they buy more even though they feel that current prices are high otherwise they have to pay a still high price for the same product.
7. Speculation: Normally speculation is witness in the stock exchange market people buy more shares only when the price show a rising time this is because they get more profit if the sell that shares when the price actually rise. The speculation becomes an exception to the law of demand.
8. Conspicuous necessaries: In case of articles like wrist watches, transistors and TV sets Etc. people buy more in spite of their high prices.
9. Emergencies: During emergency period like war, famine, flood, cyclone accident Etc. people buy certain articles even though the prices are high.
10. Ignorance: Sometimes people may not be aware of the prices prevailing in the market. Hence they buy more at huge prices because of sheer ignorance.
11. Necessaries: Consumer would buy more necessaries in spite of their higher prices.

also read: explain the Multiplier theory.