1.What is meant by giffen goods?
2.what are inferior goods.Give examples?
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Giffen good, in economic theory, is a goodthat is in greater demand as its price increases. For example, if the price of an essential food staple, such as rice, rises it may mean that consumers have less money to buy more expensive foods, so they will actually be forced to buy more rice.
An inferior good is a good whose demand decreases when consumer income rises, unlike normal goods, for which the opposite is observed. Normal goods are those for which demand rises as consumer income rises.
For example÷As a consumer's income increases the demand of the cheap cars willdecrease, while demand of costly cars will increase, so cheap cars are inferior goods. Inter-city bus service is also an example of an inferior good. This form of transportation is cheaper than air orrail travel, but is more time-consuming.
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An inferior good is a good whose demand decreases when consumer income rises, unlike normal goods, for which the opposite is observed. Normal goods are those for which demand rises as consumer income rises.
For example÷As a consumer's income increases the demand of the cheap cars willdecrease, while demand of costly cars will increase, so cheap cars are inferior goods. Inter-city bus service is also an example of an inferior good. This form of transportation is cheaper than air orrail travel, but is more time-consuming.
Hope this helps you lot.
Please Mark as a Brainliest.
arjungangwani72:
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