For a Giffen good,what effect does an increase in its price have
A)It decreases the quantity supplied.
B)It increases the quantity supplied.
C)It decreases the quantity demanded.
D)It increases the quantity demanded.

Question

Quizplus · Accepted Answer

For a Giffen good, an increase in price leads to an increase in quantity demanded due to the strong income effect outweighing the substitution effect.

For a Giffen Good,what Effect Does an Increase in Its