Giffen Good Income And Substitution Effect

Giffen Good Income And Substitution Effect. What exactly are giffen goods and are they of purely theoretical interest or has there been empirical evidence of their existence? The example often cited of a possible giffen.


Giffen Good Income And Substitution Effect

Giffen goods are highly inferior for which the negative income effect outweighs the positive substitution effect. The decrease in quantity demanded due to increase in price of a product).

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