Which of the following statements is true about Giffen goods?

CA Foundation · Business Economics · PYQS · September 2025
Which of the following statements is true about Giffen goods?
(A) A. All Giffen goods are inferior goods.
(B) B. All inferior goods are Giffen goods.
(C) C. Giffen goods are inferior goods with close substitutes.
(D) D. Giffen goods follow the law of demand.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. All Giffen goods are inferior goods.

Topics: Theory of Demand and Supply

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic