Overview

Giffen good


Related Overviews

 

'Giffen good' can also refer to...

 

More Like This

Show all results sharing this subject:

  • Economics

GO

Show Summary Details

Quick Reference

A good for which quantity demanded falls when its price falls. This can in theory occur: a Giffen good must be inferior with limited possibilities for substitution. A fall in the price of a good increases real purchasing power: if the good is inferior the income effect of this rise in real income is negative. The substitution effect of a price fall cannot be negative, but it can be small. If the substitution effect is smaller than the negative income effect, the overall effect of a fall in price is a fall in consumption.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.