Which of the following is true of a Giffen good?
A) It is a special case of an inferior good where the income effect is greater than the substitution effect and runs counter to it.
B) It is similar to an inferior good,though the income effect is positive and greater than the substitution effect.
C) It is similar to an inferior good,though the income effect is not as large for the Giffen good as it is for the inferior good.
D) It is mostly prevalent in developing economies.
Correct Answer:
Verified
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