One characteristic of a Giffen good is that it
A) is a luxury good.
B) is an inferior good.
C) has an upward-sloping Engel curve.
D) All of the above.

Question

Quizplus · Accepted Answer

Giffen goods are a type of inferior good for which demand increases as the price increases, contrary to the typical law of demand. This phenomenon occurs because the income effect of a price increase for a Giffen good outweighs the substitution effect, leading consumers to buy more of the good even as its price rises.

One Characteristic of a Giffen Good Is That It