Which of the Following Must Be True for a Giffen

question 89

Multiple Choice

Which of the following must be true for a Giffen good?

• A)The good must be inferior and the income effect must be larger than the substitution effect.
• B)The good must be inferior and the substitution effect must be larger than the income effect.
• C)Both the income and the substitution effect of a price rise will be positive.
• D)Both the income and the substitution effect of a price rise will be negative.

---

Definitions:

Brainstorming

A creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Satisfactions

The feelings of pleasure or fulfillment that come from meeting one's needs, expectations, or goals.

Social Relationships

Connections between individuals or groups based on interaction and mutual influence.

Therapeutic Groups

Groups designed to provide psychological therapy, where members share their experiences and support each other under the guidance of a trained therapist.