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Question
An inferior good for which demand falls with a fall in price is called ______.
Options
Normal good
Giffen good
Complementary good
Substitute good
MCQ
Fill in the Blanks
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Solution
An inferior good for which demand falls with a fall in price is called giffen good.
Explanation:
A Giffen good is a special type of inferior good in which demand falls when the price falls, unlike normal goods. This occurs because the income effect is so strong that it outweighs the substitution effect.
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