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.

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Definitions:

Delirium

An acute, often reversible, mental disturbance characterized by confusion, disordered thinking, and reduced awareness of the environment.

Melatonin

A hormone produced by the pineal gland that regulates sleep-wake cycles.

Haloperidol

An antipsychotic medication used to treat psychiatric disorders such as schizophrenia, acute psychotic states, and for the control of tics and vocal utterances of Tourette syndrome.

Anxiety Disorders

comprise mental health conditions characterized by excessive fear, worry, or nervousness that interfere with daily activities.