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Question
In the case of a Giffen good, the demand curve will be.
In the case of a Giffen good, the demand curve will be.
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Solution
The correct option is C Upward-sloping to the right
In the case of 'Giffen goods' there is direct price demand relationship.
Therefore the demand curve is upward sloping to the right which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.
In the case of 'Giffen goods' there is direct price demand relationship. Therefore the demand curve is upward sloping to the right which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.
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