Which of the following is NOT a characteristic of Giffen goods? a. The goods have no close substitutes b. The demand decreases with the increase in its price c. Demand increases with the increase in its price d. The demand curve is downward sloping

Which of the following is NOT a characteristic of Giffen goods? a. The goods have no close substitutes b. The demand decreases with the increase in its price c. Demand increases with the increase in its price d. The demand curve is downward sloping

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 4MC

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Question

Which of the following is NOT a characteristic of Giffen goods?

a. The goods have no close substitutes

b. The demand decreases with the increase in its price

c. Demand increases with the increase in its price

d. The demand curve is downward sloping

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