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प्रश्न
What are Giffen goods?
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उत्तर
Giffen goods are poor man's goods which people consume more as their prices rise.
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संबंधित प्रश्न
Statements that explain Giffen’s paradox:
- It is an exception to the law of demand.
- It is applicable to inferior or low quality goods.
- Demand increases when the prices of inferior goods fall
- It was identified by Prof. Alfred Marshall.
State with reasons whether you agree or disagree with the following statement:
There is a direct relationship between the price of Giffen goods and its demand.
'Price is an indicator of quality'. The statement applies to ______.
“The inverse relationship between price and quantity demanded does not hold good in many cases.”
- Justify the above as Yes or No.
- If justified, explain in brief the Giffen Effect.
State with reasons whether you agree or disagree with the following statement:
When price of Giffen goods fall, the demand for it increases.
Mention one exception to the law of demand. Give one point only.
State two circumstances under which the demand curve slopes upwards to the right.
Explain the following diagram with reference to the concept of Giffen goods.
The demand curve can slope upwards from left to right. Give one argument in support of this statement.
Why are prestige good an exception to the law of demand?
Why do people buy more luxury goods when prices go up, defying the usual law of demand?
