Question

examples of giffen goods​

Answer 1

Answer:

Definition of a Giffen Good.

Meat is a luxury and is much more expensive than rice.

If rice increased in price, your disposable income is effectively reduced significantly.

Therefore, with a reduction in disposable income – you buy less meat.

To compensate for less meat, you buy more rice to gain enough calories.

Answer 2

Explanation:

Definition of a Giffen Good.

Meat is a luxury and is much more expensive than rice.

If rice increased in price, your disposable income is effectively reduced significantly.

Therefore, with a reduction in disposable income – you buy less meat.

To compensate for less meat, you buy more rice to gain enough calories.