Explain, using examples, the reasons for some demand curves not being downward sloping.

• speculation is when consumers purchase more of a good when its price rises because they expect it to rise further in the future (1) for example houses/shares/euros (1)
• ostentatious/Veblen goods involve consumers purchasing more of a good because it is well-known/expensive, to “show off” (1) for example Rolex watch (1)
• Giffen goods involves low-income consumers purchasing more basic food products as prices increase, because they cannot afford to purchase anything else (1) for example rice/potatoes (1)
• if the quality of a good does not easily have an identified/perceived link between price and quality, high price may be used as a measure of high quality, causing an increase in demand (1) for example expensive shampoo such as Aussie (1)

(from 2022 Higher Economics finalised marking instructions 3(d))