All Giffen good are inferior goods.

Question

Quizplus · Accepted Answer

A Giffen good is a special type of inferior good where its demand increases as its price increases. All Giffen goods are inferior goods but not all inferior goods are Giffen goods. Giffen goods are rare and are situations where the demand for a good increases when its price increases. This can only happen with inferior goods, which are those for which demand increases as consumer income decreases. Therefore, all Giffen goods must be inferior goods.

All Giffen Good Are Inferior Goods