A Giffen good is an inferior good for which the income effect dominates the substitution effect.

Name: A Giffen good is an inferior good for which the income effect dominates the substitution effect.
Brand: Quizplus
Rating: 4.8 (26 reviews)

Question

Quizplus · Accepted Answer

A Giffen good is a special case of an inferior good where the demand for the good increases when its price increases. This is because the income effect dominates the substitution effect, leading consumers to buy more of the good even as its price rises.

A Giffen Good Is an Inferior Good for Which the Income