Good X is a Giffen good. When the price of X increases, the consumer will consume
A)more X.
B)the same amount of X.
C)less X.
D)more or less X depending on the size of the income effect relative to the size of the substitution effect.

Question

Quizplus · Accepted Answer

A Giffen good is a type of inferior good for which the income effect outweighs the substitution effect, leading to an increase in quantity demanded as the price rises.

Good X Is a Giffen Good