The Engel curve for a Giffen good is. negatively sloped positively sloped vertical horizontal
Question
The Engel curve for a Giffen good is:
- negatively sloped
- positively sloped
- vertical
- horizontal
Solution
The Engel curve for a Giffen good is negatively sloped.
Here's why:
-
A Giffen good is a type of inferior good. Inferior goods are those for which demand decreases as income increases.
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The Engel curve describes how a consumer's demand for a good changes as their income changes.
-
For most
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