Which of the Following Statements About a Giffen Good Is

question 29

Multiple Choice

Which of the following statements about a Giffen good is FALSE?

• A) It is very rare.
• B) Its demand curve slopes upward.
• C) The consumer buys a lot of an inferior good, and consumption of the good is very responsive to changes in income.
• D) The substitution effect dominates the income effect.

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Definitions:

More Equal

A phrase describing a reduction in disparities or inequalities, typically in contexts related to income, wealth, or opportunities.

Wealth Distribution

The manner in which wealth is distributed among the individuals in a society.

Income Inequality

Income inequality describes the extent to which income is distributed unevenly among a population.

Unequally Distributed

Refers to an unequal allocation or distribution of resources, wealth, or opportunities among different individuals or groups.