Question

Giffen goods must be inferior goods, while inferior goods, may or may not be Giffen goods. Comment​

Answer 1

Explanation:

Inferior goods are the goods whose demand falls as income of the consumer increases. On the other hand giffen goods are the goods whose demand falls as the price of goods falls and increases as the price of the good increases. This means the law of demand of a good does not hold in giffen good cases

Answer 2

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.