Open AccessSelshi Effect: A New age conspicuous Exceptions to the Theory of Law of Demand
Author(s) -
S. Naveen Kumar
Publication year - 2021
Publication title -
international journal for research in applied science and engineering technology
Language(s) - English
Resource type - Journals
ISSN - 2321-9653
DOI - 10.22214/ijraset.2021.37302
Subject(s) - economics , multitude , veblen good , recession , agency (philosophy) , credibility , supply and demand , subject (documents) , positive economics , neoclassical economics , microeconomics , law , keynesian economics , sociology , political science , social science , library science , computer science
Hypothesis: As we all come across the word “Demand” (a simple word but with multitude usage in practice), the foundational concept to understand what the economics is? And how it functions? With due importance of it, one can easily understand the behavior of commodities’ against its prices (termed as Law of Demand) subject to its assumptions. There are certain circumstances where this law loses its validity due to one or the other reasons Viz.., Veblen’s effect, Giffen paradox 1 etc.., In continuation to these exceptions this article is an attempt to check whether the state of the economy (especially recession) acts as an exceptional factor in determining the goods’/commodities’ demand or not, by considering different sectors for different time periods 2. The outputs were surprising because some sectors/businesses were benefitted due to this pandemic led recession and some faced challenge for its survival and revival. However the article is based on secondary data 3 obtained from their competing agency/authority in which the credibility and credit follows them.