Ayushi Asked a Question
August 13, 2020 12:48 pmpts 30 pts
73. In case of a Giffen good, the income effect (1) More than offsets the substitution effect (2) Is equal to the substitution effect (3) Reinforces the substitution effect 4) Only partially offsets the substitution
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  • Nidhi taparia Best Answer
    73. the answer is (1). In case of a Giffen good, the negative income effect is very strong so much so that it completely nullifies substitution effect and results in an exception ...
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