What is the difference between giffen goods and inferior goods. Five differences pls
Answer (1)
Answer:Here are five differences between Giffen goods and inferior goods: * Price and Demand (Giffen): When the price of a Giffen good goes up, people buy more of it. * Price and Demand (Inferior): When the price of an inferior good goes up, people buy less of it (like normal goods). * Income and Demand (Both): When people earn more money, they buy less of both Giffen and inferior goods. * Substitutes (Giffen): Giffen goods usually have no close substitutes. * Substitutes (Inferior): Inferior goods usually have better, more expensive substitutes.
