4 Questions
What is the relation between a Giffen good and an inferior good?
A Giffen good is inferior. When its price drops, the income effect dominates the substitution effect.
If Adam spends 70% of his income on steak, how many loaves of bread does Adam consume?
150
If P=20-Q, the marginal buyer when Q=10 is _______.
the buyer who is willing to pay $10
Which statement is TRUE?
The indifference curve bows outward because of the diminishing marginal rate of substitution
Test your knowledge of Giffen goods and inferior goods with this quiz. Understand the relationship between these economic concepts and how price changes impact consumer behavior. Explore income and substitution effects while delving into the distinction between Giffen goods and inferior goods.
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