Answer to Question #331901 in Economics for Cwofi

Question

Inferior goods and giffen goods are synonymous since the two goods relate to the consumer's purchases. True/False, explain

Answer 1

True

Giffen goods are rare forms of inferior goods that have no ready substitute or alternative, such as bread, rice, and potatoes. The only difference between Giffen goods and traditional inferior goods is that demand for the former increases even when their prices rise, regardless of a consumer's income.