Question

when the price of giffen product decrease​

Answer 1

Explanation:

Practical Example of a Giffen Good: Hunan and Gansu

In Hunan, the stable good is rice whereas, in Gansu, the stable good is wheat. ... In Hunan, Giffen behavior was exhibited – lowering the price of rice through a subsidy decreased the demand for rice while removing the subsidy increased the demand for rice.