These goods also defy the economic laws of price and demand,but for a completely different reason. Giffen goods are very basic products which low-income households rely on. Examples of Giffen goods are rice in China, bread in Europe and North America, and tortillas in Mexico. If the price ...
The theory of demand doesn’t apply to Giffen or inferior products. Giffen or inferior goods are those that witness a rise in consumption even when the price goes up. And, the consumption of these products drops with the drop in their prices. This is because it is hard to find suitable ...