Q302
In the case of a Giffen good, the demand curve will be
A.
Horizontal
B.
Downward to the right
C.
Upward to the right
AnswerD.
Vertical
Answer: Option C
Solution
Answer: Option C
Solution:
In the case of a Giffen good, the demand curve will be Upward to the right. A Giffen good has an upward-sloping demand curve, which is contrary to the fundamental law of demand, which states that the quantity demanded for a product falls as the price increases, resulting in a downward slope for the demand curve.