Every Giffen good is a necessity but not every interior good is a necessity.

Question

Quizplus · Accepted Answer

Giffen goods are goods for which an increase in price leads to an increase in demand, and are typically low-income necessities such as rice, potatoes, or bread. Whereas, interior goods are goods for which an increase in income leads to an increase in demand, but they may or may not be necessities. Therefore, not all interior goods are necessities, but all Giffen goods are necessities.

Every Giffen Good Is a Necessity but Not Every Interior