Question

what is giffen paradox

Answer 1

Accn to the law of demand when other things being equal there is negative Relation between price of goods and its demand i.e as price increases demand decrease and vice versa. Giffin Paradox is an exception to this law. It is named after the 19th century British economist, Sir Robert Giffin who found that when the price of bread fall the demand for it also fell this was because when the price fell the real income of the consumer rose and he was in the position to buy better quality or more bread.