State with reasons whether you agree or disagree with the following st

1.	State with reasons whether you agree or disagree with the following statements:When price of Giffen goods fall, the demand for it increases.
Answer» I Disagree with the statement. Reason : When price of Giffen goods falls, the demand for its decreases. Inferior goods or low-quality goods are those goods whose demand does not rise even if their price falls. At times, demand decreases when the price of such commodities fall. Sir Robert Giffen observed this behaviour in England in relation to bread declined, people did not buy more because of an increase in their real income or purchasing power. They preferred to buy superior-good like meat. This is known as Giffen’s paradox.

State with reasons whether you agree or disagree with the following statements:When price of Giffen goods fall, the demand for it increases.

Answer»

I Disagree with the statement.

Reason :

When price of Giffen goods falls, the demand for its decreases.

Inferior goods or low-quality goods are those goods whose demand does not rise even if their price falls. At times, demand decreases when the price of such commodities fall. Sir Robert Giffen observed this behaviour in England in relation to bread declined, people did not buy more because of an increase in their real income or purchasing power. They preferred to buy superior-good like meat. This is known as Giffen’s paradox.

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