Vidyalelo
Commerce · Q74

Economics

Graduate and Post Graduate · Commerce · question 74

Q74

Price and demand are positively correlated in case of

A.
Normal goods
B.
Comforts
C.
Giffen goods
Answer
D.
Luxuries

Answer: Option C

Solution

Answer: Option C
Solution:
Price and demand are positively correlated in case of Giffen goods. A Giffen good is a product for which demand increases as the price increases and falls when the price decreases.