Which of the following describes the Giffen good case? When the price of the goo

Question

Which of the following describes the Giffen good case? When the price of the good falls, the income effect is in the opposite direction to the substitution effect and consumption falls. falls, the income effect is in opposite direction to the substitution effect and consumption rises. rises, the income effect is opposite to and greater than the substitution effect and consumption falls. falls, the income effect is in the same direction as the substitution effect and consumption rises. Both A and D are correct.

Explanation / Answer

b

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