examples of giffen goods
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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.
Answered by
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.
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