In case of Giffen's paradox, the slope of demand curve is
The demand curve has a positive slope in the Giffen paradox. A price increase reduces real purchasing power, and the resulting income effect for the inferior good outweighs…
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In case of Giffen's paradox, the slope of demand curve is
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Correct answer B
The demand curve has a positive slope in the Giffen paradox. A price increase reduces real purchasing power, and the resulting income effect for the inferior good outweighs the substitution effect, increasing its quantity demanded.
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Gujarat SET (GSET)