XVI. Work in small groups. Think about examples of storable commodities, decide whether it is necessary in some economies to stock them and present your ideas to the class

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XVII. Work in pairs. Read the information given bellow and think of and discuss the examples of the Giffen and the Veblen effects.

There are exceptions to the law of demand. The best-known exception is the Giffen effect – a consumer buys more, not less, of a commodity at higher prices when a negative income effect dominates over the substitution effect. Another is the Veblen effect – some commodities are theoretically wanted solely for their higher prices. The higher these prices are, the more the use of such commodities fulfills the requirements of conspicuous consumption, and thus the stronger the demand for them.

XVIII. Make a brief report on the subject: “Demand and supply, and the Market”.

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