For the special case of a Giffen good, the partial derivative of quantity demanded with respect to price is _____, and the partial derivative of quantity demanded with respect to income is _____.

Question

Quizplus · Accepted Answer

For a Giffen good, the partial derivative of quantity demanded with respect to price is positive because as the price increases, the quantity demanded also increases, which is contrary to normal goods. The partial derivative of quantity demanded with respect to income is negative because as income increases, the demand for the inferior Giffen good decreases.

For the Special Case of a Giffen Good, the Partial