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Giffen goods exception kaise h law of demand ka.kyuki ye type of inferior good h then price kmm hone p demand jyda kaise ?
giffen goods exception kaise h law of demand ka.kyuki ye type of inferior good h then price kmm hone p demand jyda kaise ?
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Priya gulani
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The Irish Potato Famine is a classic example of the Giffen goods concept. Potato is a staple in the Irish diet. During the potato famine, when the price of potatoes increased, people spent less on luxury foods such as meat and bought more potatoes to stick to their diet. So as the price of potatoes increased, so did the demand, which is a complete reversal of the law of demand. Another example for staple foods like rice, when the price of rice rises, people with lower incomes will spend less on other superior foods and instead buy more rice.
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Rucha rajesh shingvekar Best Answer
A Giffen good is considered to be an exception to the Law of Demand. The unique features of a Giffen good results in quantity demanded increasing when there is an increase in price. ... It's when consumers consume more of an inferior good when the price of the good rises, which is in direct violation of the Law of Demand.