Answer-A Giffen good is characterized by:

Explanation A Giffen good is an inferior good where the negative income effect outweighs the substitution effect, causing demand to rise with price.

Question

A Giffen good is characterized by:

A Positive income elasticity and substitution effect dominates income effect Correct Answer Incorrect Answer

B Being a luxury item with elastic demand Correct Answer Incorrect Answer

C A positive relationship between price and quantity demanded Correct Answer Incorrect Answer

D A negative cross-price elasticity with its substitute Correct Answer Incorrect Answer

Explanation: A Giffen good is an inferior good where the negative income effect outweighs the substitution effect, causing demand to rise with price.

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