Question

A consumer consumes good X. Explain the effects of fall in prices of related goods on the

demand of X​

Answer 1

Answer:

Answer: All Giffen goods are inferior. For a Giffen good, the income effect must be negative; that is a fall in income increases demand. ... Not all inferior goods will be Giffen goods too; if the income effect is small relative to the substitution effect, a usual shaped demand curve results.

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