A columnist on forbes.com noted that many poor people have diets that are high in carbohydrates, such

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A columnist on forbes.com noted that many poor people have diets that are high in carbohydrates, such as potatoes, rice, or bread, with relatively little protein from meat or fish. He said that as a consumer in this situation, if the price of the carbohydrates in your diet rises, “you’ll cut out the more expensive fish, bacon or pork in order to buy more of that basic carbohydrate. And that’s what a Giffen Good is.” Explain his reasoning that in this situation the carbohydrate is a Giffen good.

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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