8. In Chapter 5 you learned that, under certain conditions, a good could be a Giffen good:...

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8. In Chapter 5 you learned that, under certain conditions, a good could be a Giffen good: An increase in the price of the good could lead to an increase, rather than a decrease, in the quantity demanded. In the theory of cost minimization, however, we learned that, an increase in the price of an input will never lead to an increase in the quantity of the input used. Explain why there cannot be

“Giffen inputs.”

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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