i)Statements that explain Giffen's Paradox 2)It is an exception to the Law of Demand. (b) It is applicable to inferior or Low quality goods (c) Demand increases when the prices of inferior goods fall (d) It was identified by Prof. Alfred Marchall​

question img

Answers 1

a. It is an exception to the Law of Demand is the correct answer.

Explanation:

  • The Giffen paradox is one of the most famous paradoxes in economics.
  • According to the Giffen paradox, the demand for some goods and services increases even when their prices are increasing and vice versa.  
  • This directly is an exception to the law of demand because according to the law of demand the price and demand of a product are always indirectly proportional.
  • Therefore, A, it is an exception to the Law of Demand, is the correct answer.

If you know the answer add it here!

Can't find the answer?

Log in with Google

or

Forgot your password?

I don't have an account, and I want to Register

Choose a language and a region
How much to ban the user?
1 hour 1 day 100 years