Home › Bihar Board Class 12 (Arts) › Economics › Theory of Consumer Behaviour › A good for which income effect outweighs substit…
A good for which income effect outweighs substitution effect, so demand rises with price, is called what?
ANormal good
BGiffen good
CSubstitute good
DComplement good
Answer & Solution
Correct answer: B. Giffen good
When the income effect is stronger than the substitution effect, demand is positively related to price: a Giffen good.
Related questions
For a price-inelastic good, a price rise causes expenditure to do what?A price rises and quantity falls by a larger percentage. What happens to expenditure on thExpenditure on a good equals which product?Why is demand for a particular variety of pulses likely more elastic than for food overallWhich kind of good typically has price inelastic demand?Which demand curve has elasticity of one at every point?A vertical demand curve is described as what?Elasticity on the part of a linear demand curve to the left of the midpoint is what?