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Question
What are Giffen goods?
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Solution
Giffen goods are poor man's goods which people consume more as their prices rise.
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RELATED QUESTIONS
State with reason whether you agree or disagree with the following statement:
When the prices of Giffen goods falls, demand for such goods rises.
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.
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.
Give one point each of similarity and dissimilarity between Giffen goods and Veblen goods.
Why are prestige good an exception to the law of demand?
Which of the following best describes a Giffen good?
Why do people buy more luxury goods when prices go up, defying the usual law of demand?
What happens to the demand for necessities like salt or electricity when their prices increase?
Which situation is an example of speculation affecting demand?
