Tuesday, January 17, 2006

Giffen Goods

Most of you remember Giffen goods as goods that have upward sloping demand curves. However, it is also important to remember that these goods are in fact inferior goods. You can think of them as VERY inferior goods, since they are inferior goods where the income effect outweighs the substitution effect, which is how you get the upward slope in the demand curve.

0 Comments:

Post a Comment

<< Home