In the relevant price range a demand curve for a Giffen good would be
A)upward sloping.
B)downward sloping.
C)horizontal.
D)vertical.

Question

Quizplus · Accepted Answer

A Giffen good is a type of inferior good for which demand increases as its price increases. This is because the good is so essential to the consumer that as the price rises, the consumer is forced to reduce their overall consumption of goods, and therefore they may choose to consume more of the Giffen good due to its perceived necessity. As a result, the demand curve for a Giffen good is upward sloping.

In the Relevant Price Range a Demand Curve for a Giffen