Question

Which of the following is appropriate as description about Giffen goods?


(a) Normal goods can also be Giffen goods
(b) if a certain good is an inferior good, it is a Giffen good
(c) in case of a Giffen good, the size of substitution effect is larger than that of income effect
(d) in case of a Giffen good, income effect and substitution effect work in the opposite directions​

Answer 1

Answer:

option :b

Explanation:

if a certain good is an inferior good, it is a Giften good

Answer 2

Answer:

(a) Normal goods can also be Gifften goods