PRICE increases. (For a normal good, as the price increases, consumption decreases.) Thus, the demand curve will be upward instead of DOWNWARD sloping. A Giffen good has an upward sloping demand curve because it is exceptionally inferior. It has a STRONG negative income elasticity of demand such that when a price changes the income effect outweighs the SUBSTITUTION effect and this leads to perverse demand curve.

"> PRICE increases. (For a normal good, as the price increases, consumption decreases.) Thus, the demand curve will be upward instead of DOWNWARD sloping. A Giffen good has an upward sloping demand curve because it is exceptionally inferior. It has a STRONG negative income elasticity of demand such that when a price changes the income effect outweighs the SUBSTITUTION effect and this leads to perverse demand curve.

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The demand curve for a Giffen good is

Economics Economics miscellaneous in Economics 4 months ago

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A Giffen good is a good whose consumption increases as its PRICE increases. (For a normal good, as the price increases, consumption decreases.) Thus, the demand curve will be upward instead of DOWNWARD sloping. A Giffen good has an upward sloping demand curve because it is exceptionally inferior. It has a STRONG negative income elasticity of demand such that when a price changes the income effect outweighs the SUBSTITUTION effect and this leads to perverse demand curve.

Posted on 30 Jun 2025, this text provides information on Economics related to Economics miscellaneous in Economics. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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