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Please explain what a Giffen good is and how it violates laws of demand?

1 Answer

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A giffen good is a good whose demand rises when the price rises, which is opposite to the laws of demand because the laws of demand state that a rise in price will result in a reduction of demand. An example can be a staple food like bread. If the price of bread rises, people will buy it more because they'll have to cut back on other more expensive things, of course this applies in theory.
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User Ento
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