When the price of a commodity increases and the quantity demanded also increases, this is a case of
Answer Details
When the price of a commodity increases and the quantity demanded also increases, this is a case of exceptional demand.
Exceptional demand is when the demand for a product increases despite an increase in price. This is because the product has become more desirable, and consumers are willing to pay more for it.
This type of demand usually occurs for products that are considered to be luxury goods, such as high-end fashion items or luxury cars. As the price of these items increases, they become more desirable to consumers who view them as a status symbol.
In contrast, normal demand is when the quantity demanded decreases as the price increases. This is the typical relationship between price and demand, as consumers are usually more price-sensitive for everyday items.
Overall, exceptional demand occurs when consumers are willing to pay more for a product because they perceive it to be more valuable or desirable, even though the price has increased.