A product with backward sloping demand displays:
A) a positive price-to-quantity demanded relationship.
B) a negative price-to-quantity demanded relationship.
C) a higher consumer sensitivity toward price than toward product quality.
D) a higher consumer sensitivity toward price than toward product desirability.

Question

Quizplus · Accepted Answer

A product with a backward sloping demand curve, also known as a Giffen good, exhibits a positive price-to-quantity demanded relationship, meaning as the price increases, the quantity demanded also increases, contrary to the typical law of demand.

A Product with Backward Sloping Demand Displays