A Giffen good must be an inferior good, but an inferior good need not be a Giffen

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“A Giffen good must be an inferior good, but an inferior good need not be a Giffen good.” Explain this statement fully, using the concepts of income and substitution effects.

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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Question Posted: Nov 14, 2014 08:23 AM

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A Giffen good must be an inferior good, but an inferior good need not be a Giffen

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The substitution effect of a price change always implies a negative r...View the full answer

Microeconomics Theory and Applications

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