______ is a type of good for which demand increases as its price rises ?Giffen Good Capital Good Consumer Good none

The correct answer to the question is Giffen Good.

Explanation:

Giffen goods are a unique category of inferior goods for which an increase in the price leads to an increase in demand, contrary to the typical law of demand which states that higher prices typically lead to lower demand. This occurs because Giffen goods are often essential items that people cannot do without, such as staple foods. When prices rise, consumers may not be able to afford more expensive substitutes and hence consume more of the Giffen good as it remains the only affordable option despite its higher price.

In summary, Giffen goods exemplify a situation where the income effect outweighs the substitution effect, resulting in increased demand as prices rise.