Giffen goods have positively-sloped demand curves because they are
A)normal goods for which the income effect outweighs the substitution effect.
B)normal goods for which the substitution effect outweighs the income effect.
C)inferior goods for which the income effect outweighs the substitution effect.
D)inferior goods for which the substitution effect outweighs the income effect.

Question

Quizplus · Accepted Answer

Giffen goods are inferior goods where the income effect is stronger than the substitution effect, leading to an increase in quantity demanded as the price rises.

Giffen Goods Have Positively-Sloped Demand Curves Because They Are