A theoretical good for which the demand curve is upward sloping is a(n):
A) Giffen good.
B) substitute good.
C) normal good.
D) complement good.

Question

Quizplus · Accepted Answer

Giffen goods are a type of inferior good for which demand increases as the price increases, due to the strong income effect of a price increase that outweighs the substitution effect. This results in an upward-sloping demand curve.

A Theoretical Good for Which the Demand Curve Is Upward