Home › CBSE Class 11 (Arts) › Economics › Microeconomics: Consumer's Equilibrium and Demand › Giffen goods break the law of demand because the
Giffen goods break the law of demand because the
Asubstitution effect is nil
Bprice is set by law
Cincome effect outweighs it
Dquality keeps improving
Answer & Solution
Correct answer: C. income effect outweighs it
For an inferior good the income effect works against the fall in demand and outweighs the substitution effect.
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