Why the demand curve is upward sloping in case of giffen goods?
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Answers ( 3 )
A giffen good faces an upward sloping demand curve because the income effect dominates the substitution effect, meaning that quantity demanded increases as price rises. However, a good cannot have an upward sloping demand curve forever, because eventually the consumer will run out of money
giffen goods are a type of inferior goods so they have a positive relation between price and quantity
It is beacuse of the income effect. As their is increase in demand with the rise in prices.