Assertion (A): Every inferior good is a Giffen good.
Reason (R): Every Giffen good is an inferior good.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A is false: most inferior goods still obey the law of demand; only an extreme few are Giffen goods.
R is true: a Giffen good must be inferior.

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

The rule this testsSubstitutes, complements, normal and inferior goods

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Assertion (A): Every inferior good is a Giffen good.Reason (R): Every Giffen good is an inferior good.

Explanation

Assertion (A): Every inferior good is a Giffen good.
Reason (R): Every Giffen good is an inferior good.