Question

What was Robert Giffen's observation relating to price and quantity demanded of Giffen goods?

• A. He observed that for certain commodities price and quantity demanded move in opposite directions.
• B. He observed that for certain commodities price and quantity demanded move in the same direction.
• C. He observed that for certain commodities price and quantity demanded always remain constant.
• D. Both (a) and (b) are correct

Answer 1

Answer: (B)

He observed that for certain commodities price and quantity demanded move in the same direction.

Robert Giffen's observation for Giffen goods was that price and quantity demanded move in same direction for certain inferior commodities.