Advertisements
Advertisements
Question
Giffen goods are richman's goods
Options
True
False
Advertisements
Solution
This statement is False.
Explanation:
Giffen goods are not rich man's goods. Giffen goods are a type of inferior good for which demand increases as the price increases, contrary to the typical law of demand. This situation arises due to the strong income effect outweighing the substitution effect, which is more common among low-income consumers. Therefore, the statement is False.
APPEARS IN
RELATED QUESTIONS
Increase in demand is caused by
The movement on or along the given demand curve is known as ______
Distinguish between extension and contraction of demand.
Explain the law of demand.
If with the rise in price of good Y, demand for good X rises, the two goods are:
If prices of cars rise, many people may put off buying a new car. So the demand for petrol will fall.
Pick the option which does not belong to the group:
What is meant by the income effect of a fall in the prices of a commodity?
The following table shows the amount of sugar bought by a household at different prices:
| Period | Price (₹ per kg) | Amount Bought (kg) |
| Jan. 2000 | ₹ 15 | 4 |
| Feb. 2000 | ₹ 16 | 5 |
Does the behaviour of household contradict the law of demand? Give reasons in support of your answer.
Which formula correctly expresses the factors that determine the demand for a commodity?
