There are certain exceptional cases when the demand curves instead of sloping downwards rise upwards. A demand curve rising upwards shows that people buy more when the prices. This is the case when a serious shortage of a commodity is feared and there is a panic among the people or when the use of a commodity confers distinction or when the price of a necessity of life goes up.
The normal demand curve slopes downwards from left to right, thus showing an inverse relationship between price and the quantity demanded. The exceptional demand curve, on the other hand, is one which slopes down from right to left or in other words, which goes up from left to right, showing that more is demanded at a higher price than at a lower price. Such a demand curve .
The demand curve in direct relationship between price and the quantity demanded. The higher the price more of a good is bought. Such is the case with items of conspicuous consumption which are used by the rich as status symbols or for show off. Diamonds are an example of one such goods. These are considered as a thing which lends prestige to the buyer. Thus more expensive they are, the higher the prestige they confer on the purchaser, and therefore more is the demand for them by other hand, if diamonds become very cheap and confer no distinct status or prestige on the buyer, they will be just treated as mere stones or pebbles and hence people would not care much to buy and other goods of such conspicuous consumption, which make them an exception to the law of demand.SUBMIT ASSIGNMENT NOW!