Learning Contents: ·            Situations where the law of demand is not applicable.     Exceptions to the Law of Demand Exceptions to the Law of Demand indicates situations where the law of demand does not apply. In the reality, there exist some situations where the quantity demand of a commodity increases with rise in price and decreases with a fall in price and therefore the demand curve slopes upward from left to right.   The following points highlight the exceptions to the law of the demand 1.    Articles of Distinction /Veblen Goods / Goods of Ostentation / Snob appeal The concept of Veblen good was propounded by the famous economist Thorstein Veblen , who introduced the theory of “ conspicuous  consumption ”. Veblen goods are the goods of social distinction such as designer jewelry, precious diamonds, luxury cars, watches, bags, etc. The price effect is positive i.e. when the price of a Veblen good goes up,