A Giffen good is a good for which a(n):
A)increase in the price raises the quantity demanded
B)increase in the price lowers the quantity demanded
C)increase in the price raises the quantity supplied
D)decrease in the price raises the quantity supplied

Question

Quizplus · Accepted Answer

Giffen goods are an exception to the basic law of demand, where an increase in price leads to an increase in quantity demanded due to the income effect outweighing the substitution effect.

A Giffen Good Is a Good for Which A(n)