A) given good
B) normal good
C) superior good
D) an Inferior good
Correct Answer: A
Solution :
A negative income elasticity of demand is associated with inferior goods. The Giffen good is an unusual type of inferior good which has positive price elasticity of demand. It is a good which people paradoxically consumer more of as the price rises, violating the law of demand. When price goes up, the quantity demanded also goes up.
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