Answer to Question #168309 in Microeconomics for Asare Owusu Isaac

Question

"All giffing goods are inferior goods and not all inferior goods are giffing goods" do you agree? Justify your answer.

Answer 1

I agree.

Giffen goods are rare forms of inferior goods that have no ready substitute or alternative. The only difference from traditional inferior goods is that demand increases even when their price rises, regardless of a consumer's income. An inferior good is a good that decreases in demand when consumer income rises (or rises in demand when consumer income decreases)