Answer to Question #332199 in Economics for McRich

Question

Inferior goods and giffeb goods are synonymous since the two goods relate to the consumer's purchases. True or false, explain

Answer 1

True

Giffen goods are rare forms of inferior goods that have no ready substitute or alternative, such as bread, rice, and potatoes. The only difference between Giffen goods and traditional inferior goods is that demand for the former increases even when their prices rise, regardless of a consumer's income.