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A.naresh posted an Question
January 22, 2020 • 18:59 pm 15 points
  • UGC NET
  • Management

Please correct this answer

UGC NET ,In paper 2-management material, chapter 1,in managerial economics topic ( Q ) Giiffen goods are those goods options (A)for which demand increases as price decreases) (B)which are in short supply (C)which have high elasticity of demand (D)which gives rise to a cob-web situation *Ans. (A) please explain this answer....

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    Eduncle best-answer

    Dear student,

    Greetings!!

    Giiffen goods are those goods options :

    (A) for which demand increases as price increases

    (B) which are in short supply 

    (C) which have high elasticity of demand 

    (D) which gives rise to a cob-web situation 

    Sol. (A) A Giffen good is a low income, non-luxury product for which demand increases as the price increases and vice versa. A Giffen good has an upward-sloping demand curve which is contrary to the fundamental laws of demand which are based on a downward sloping demand curve.

    Thank you for asking your query.

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    thank you. mistake in options so I got confusion

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