Answer:
Abnormal or exceptional demand refers to a sudden increase or decrease in demand for a particular product or service that is not in line with the typical or expected consumer behavior. There can be several reasons why this occurs, including:
Seasonal Demand: Certain products may have a seasonal demand, such as ice cream during the summer, or winter clothing during the winter. If there is an unexpected change in weather conditions, it can lead to an abnormal or exceptional demand for these products. For example, if there is a sudden heatwave in the middle of winter, it can cause an abnormal demand for ice cream.
Special Events: Special events like concerts, festivals, or sports events can lead to an abnormal demand for certain products or services. For example, during the World Cup or Olympics, there can be an abnormal demand for televisions, as people want to watch the games at home.
Stockpiling: Sometimes, consumers may stockpile products due to the fear of shortages or price hikes. This can lead to an abnormal demand for certain products. For example, during the COVID-19 pandemic, there was an abnormal demand for toilet paper and other household essentials due to fear of shortages.
Fashion Trends: Fashion trends can also lead to an abnormal demand for certain products. For example, if a celebrity is seen wearing a particular style of clothing or accessory, it can lead to an exceptional demand for that product.
New Products: The introduction of new products can also lead to an abnormal demand. For example, when the iPhone was first released, there was an exceptional demand for the product due to its unique features and design.
In conclusion, there can be several reasons why an abnormal or exceptional demand occurs, including seasonal demand, special events, stockpiling, fashion trends, and new product releases. Understanding the reasons for such demand can help businesses plan and manage their inventory and production levels to meet the needs of their customers.