alleryMatch Giffen rules: 1. Good: p. Inferior 2. Size: q. Big budget 3. Sub: r. Weak choice
A1-p, 2-q, 3-r
B1-p, 2-r, 3-q
C1-q, 2-p, 3-r
D1-r, 2-p, 3-q
Answer & Solution
Correct answer: A. 1-p, 2-q, 3-r
A Giffen good must be strongly inferior and consume a large budget share so the negative income effect outweighs substitution.
Keep practising Theory of Demand & Elasticity
Browse all Theory of Demand & Elasticity questions for ICSE Class 10, or explore more Economics topics.
Related questions
Match short habit:
1. Need: p. Short run
2. Adapt: q. Living
3. Long: r. ElasticMatch scale concepts:
1. Scale: p. Total
2. Output: q. Percent
3. Ratio: r. ElasticMatch Ricardo view:
1. David: p. Luxury
2. Cap: q. Saved
3. Tax: r. IncomeMatch income spent:
1. Large: p. Elastic
2. Small: q. Low elast
3. Share: r. BudgetMatch MR relation:
1. Pos MR: p. Elastic
2. Mid MR: q. Unit e
3. Neg MR: r. InelastMatch Cournot role:
1. Cournot: p. 1838
2. Prior: q. Marshall
3. Small: r. ChangesMatch point elast:
1. Point: p. Calc
2. Slope: q. dQ by dP
3. Spot: r. ExactMatch linear curve:
1. Upper: p. Elastic
2. Mid: q. Unit point
3. Lower: r. Inelastic