A Giffen good is a good for which
a. an increase in the price raises the quantity demanded.
b. the income effect outweighs the substitution effect.
c. an increase in the price decreases the quantity demanded.
d. Both a) and b) are correct.
d
Economics
You might also like to view...
The long-run average cost curve shows
A) the average cost of producing where diminishing returns are not present. B) the plant size or scale that the firm should build. C) the lowest average cost of producing every level of output in the long run. D) where the most profitable level of output occurs.
Economics
The relationship between consumption and income is the
a. spending function b. consumption function c. autonomous consumption d. household consumer spending e. household spending function
Economics