Law of demand is violated when:

CA Foundation · Business Economics · MTP · April 2025
Law of demand is violated when:
(A) A. Income effect is negative
(B) B. Substitution effect is negative
(C) C. Negative income effect is greater than the substitution effect
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Negative income effect is greater than the substitution effect

Topics: Theory of Demand and Supply

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