Answer to Question #98367 in Microeconomics for sadia

Question #98367
what are giffen goods and what happen to giffen goods if income rises
1
Expert's answer
2019-11-11T15:37:31-0500

Giffen goods are goods which are demanded more even when their prices rise. A giffen good is an inferior good with the unique characteristics that an increase in price actually increases the quantity of the good that is demanded. If income rises the demand for giffen goods decreases because people will consume less of inferior goods and more of normal goods.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS