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:

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Federal Trade Commission

A U.S. government agency established to protect consumers and promote competition, enforcing antitrust and consumer protection laws.