The law of demand is one of the most widely understood laws of economics: if you raise the price of something, fewer people will buy it; if conversely, if you reduce its price, more people will buy it.
The law generally holds true as long as the goods in question don’t have any special properties or constraints. However, there are a number of known exceptions, for example:
- Veblen goods – expensive goods which are desirable for the status they confer on anyone rich enough to buy them. Contrary to the law of demand, demand for a Veblen good will rise as its price increases.
- Giffen goods – a cheap but essential good which counter-intuitively increases in demand as its price rises. This is because, if a staple food (e.g. bread) rises in price, the poorest consumers have to stop buying more expensive foods (e.g. meat), and spend the savings on more of the cheapest good.
I hypothesise the existence of another type of good which behaves as an exception to the law of demand: a meal deal good.