Consider the two statements: Which of the following is true?
I.X is an inferior good.
II.X exhibits Giffen's Paradox.
A)I implies II,but II does not necessarily imply I.
B)II implies I,but I does not necessarily imply II.
C)I and II are statements of the same phenomenon.

Question

Quizplus · Accepted Answer

Giffen's Paradox is a specific case of an inferior good where demand increases as the price increases, which implies the good is inferior. However, not all inferior goods exhibit Giffen's Paradox.

Consider the Two Statements: Which of the Following Is True