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    5. The demand curve for a giffen good is

    Question

    The demand curve for a giffen good

    is
    A Upward rising Correct Answer Incorrect Answer
    B Downward falling Correct Answer Incorrect Answer
    C Parallel to quantity axis Correct Answer Incorrect Answer
    D Parallel to price axis Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    For a giffen good, demand increases as the price increases and vice versa (Price effect is positive)

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