_____ is a type of good for which demand increases as its price rises ?Giffen Good Capital Good Consumer Good none
Question
_____ is a type of good for which demand increases as its price rises ?Giffen Good Capital Good Consumer Good none
Solution
The answer is Giffen Good. A Giffen Good is a type of good for which demand increases as its price rises. This is a rare type of good and goes against the basic law of demand in economics which states that as the price of a good increases, the quantity demanded decreases. Giffen goods are typically inferior goods that don't have easily available substitutes, causing people to buy more of them even when their prices rise.
Similar Questions
What distinguishes a Giffen good from other inferior goods?The demand decreases with a decrease in priceThe demand increases with an increase in priceThe demand decreases with an increase in incomeThe demand increases with a decrease in income
Price of the good is one of the factors affecting the demand for a commodity.a.Falseb.True
If a good is a Giffen good, thenGroup of answer choicesthere is no optimal level of consumption for the consumer.the demand curve is upward sloping.the demand curve is horizontal.the supply curve is downward sloping.
Which type of good experiences an increase in consumption as consumer income decreases?Normal goodLuxury goodGiffen goodInferior good
The demand for a good will be more price inelastic:Group of answer choicesthe fewer substitutes are available for the good.the higher is its price.the smaller the supply of the good.the larger is the percentage of income spent on it.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.