Multiple Choice
Which of the following statements is FALSE?
A) A Giffen good must be an inferior good.
B) A Giffen good must be such that the income effect and the substitution effect move in opposite directions, and the income effect outweighs the substitution effect.
C) A Giffen good must be such that the substitution effect outweighs the income effect for an inferior good.
D) A Giffen good must have an upward-sloping demand curve.
Correct Answer:
Verified
Correct Answer:
Verified
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