If good A is an inferior good, this implies that a decrease in income will lead to a higher market price and quantity supplies of good A. (i) True (ii) False If a good is characterized as a Giffen good it must be an inferior go...
As opposed to normal necessity and luxury goods, inferior and Giffen goods exhibit decreasing consumer demand as consumers’ incomes rise. However, Giffen goods, similar to luxury goods, experience increasing relative consumer demand as prices rise. For more on inferior and Giffen goods, see the li...