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by lil_cain
3415 days ago
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No. The example of a giffen good given is a high calorie food, that's exceptionally low status. Thus, when its price falls, people will demand less of it, as they can afford to replace some of their consumption of that food with more expensive, better food. Workers replacing some proportion of their bread or potato intake with meat, as the price of that bread or potato intake drops, say. The idea is that the good is the lowest quality way of fulfilling some need - so people buy it because they can't afford anything else. |
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