A demand which gives rise to the reverse of the law of demand is__________

Step 1: Analyze the question The law of demand says that when price rises, quantity demanded falls (and vice versa). The question asks which type of demand does the opposite: price rises and quantity demanded also rises, giving an upward-sloping demand curve.

Step 2: Review each option

• A. Derived demand: Demand for a good because it is needed to produce another good. For example, demand for cement is derived from demand for buildings. It does not reverse the law of demand.
• B. Joint demand: Demand for goods used together, such as car and fuel, or bread and butter. It still follows the law of demand.
• C. Abnormal demand: Demand that behaves contrary to the normal law. Examples are Giffen goods (inferior staples where a price rise leads to more being bought), Veblen goods (prestige goods bought more when expensive), and speculative demand (people buy more as prices rise, expecting further increases).
• D. Composite demand: Demand for a good that has several uses, such as electricity for lighting, cooking and industry. It follows the normal law.

Step 3: Solution Only abnormal demand gives an upward-sloping demand curve, where quantity demanded rises as price rises. This is the reverse of the law of demand.

Answer: C. Abnormal demand

Exam tip: Match the demand types to keywords:

• Derived = "needed for something else"
• Joint = "used together"
• Composite = "many uses"
• Abnormal = "against the law of demand" (Giffen, Veblen, speculative)