A Giffen Good Is a Good for Which

question 161

Multiple Choice

A Giffen good is a good for which

• A)a decrease in the price decreases the quantity demanded.
• B)the income effect outweighs the substitution effect.
• C)an increase in the price decreases the quantity demanded.
• D)Both a) and b) are correct.

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Definitions:

Nonmetal Materials

Substances or materials that do not have the characteristics of metals, including aspects such as electrical conductivity, luster, or malleability.

Magnetized

The state of being magnetically charged, having a magnetic field induced or naturally occurring.

Easily Magnetized

Refers to materials that can quickly become magnetized when exposed to a magnetic field and retain the magnetization for a period.

Metals

Elements that typically have a shiny surface and can conduct electricity and heat efficiently.