Answer to Question #331162 in Economics for Prince

Question

Inferior goods and Giffen goods are synonymous since the two goods relate to the consumer’s purchases. True or False, explain

Answer 1

False

Inferior goods, which are the opposite of normal goods, are anything a consumer would demand less of if they had a higher level of real income. They may also be associated with those who typically fall into a lower socio-economic class.

Giffen goods are non-luxury items that generate higher demand when prices rise, creating an upward-sloping demand curve contrary to standard laws of demand.