Question

Give the meaning of relative goods ,inferior goods, and giffin goods.

Answer 1

Heya...

Relative goods are those goods which creates an impact on the demand of other goods...These are two subsitute goods ( Creates +ve impact as coke and pepsi..) and complementary goods ( does -ve impact as car and petrol )...


Inferior goods which are cheap in comparison to normal goods....Have - ve income effect....

Giffen goods highly cheaper goods in this case law of demand fails..