Quick Definition

A Giffen good is a product that experiences an increase in demand as its price increases, contrary to the typical law of demand.

Examples

• 1In a famine, staple foods like rice or bread might become Giffen goods as they become more expensive but are still essential for survival.
• 2In an economic crisis, cheaper substitutes for luxury items might become Giffen goods if their prices rise but people still need to maintain certain standards.
• 3During hyperinflation, everyday items can turn into Giffen goods as their prices skyrocket but people still need them for daily survival.

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