A Giffen good is

a luxury good bought for showCorrect answerYour answera normal good with a downward-sloping demand curveCorrect answerYour answerany good given freeCorrect answerYour answeran inferior good whose quantity demanded rises when its price risesCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

For a very poor household spending much of its income on a staple, a price rise can cut real income so much that it buys more of the staple and less of costlier food.
This is an exception to the law of demand; such goods are always inferior goods.

Worth noting

Goods bought for show are a different exception, sometimes called Veblen goods.

Concept: Giffen goods
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsSubstitutes, complements, normal and inferior goods

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Ten questions from Demand & Its Determinants, at your own pace.

A Giffen good is

Explanation