In the case of a Giffen good, the demand curve will be

1.	In the case of a Giffen good, the demand curve will be
Answer» Upward to the right In the CASE of a Giffen good, the demand CURVE will be Upward to the right. A Giffen good has an upward-sloping demand curve, which is contrary to the FUNDAMENTAL law of demand, which STATES that the quantity demanded for a product FALLS as the price increases, resulting in a downward slope for the demand curve.

Answer»

Upward to the right

In the CASE of a Giffen good, the demand CURVE will be Upward to the right. A Giffen good has an upward-sloping demand curve, which is contrary to the FUNDAMENTAL law of demand, which STATES that the quantity demanded for a product FALLS as the price increases, resulting in a downward slope for the demand curve.

Discussion

No Comment Found

Related InterviewSolutions

In May 2013, firm was supplying 500kg of sugar at market price of Rs.30/- per kg. During June 2013, firm's supply of sugar had decreased to 450kg at price of Rs.20/- per kg. These changes show that supply of sugar is
In perfect competition, the firm's _____ above AVC has the identical shape of the firm's supply curve
Scarcity means
Economic profit is
A firm encounters its 'shutdown point' when
Under Marginal utility analysis, utility is assumed to be a
A higher indifference curve shows
Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is
For inferior commodities, income effect is
Elinor Ostrom and Oliver Williamson are the Nobel Prize Laureates in Economics in 2009. Do you know in which year was Francois Quesnay's Tableu Economique published?

In the case of a Giffen good, the demand curve will be

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment