Giffenhyödyke
Giffenhyödyke, named after economist Sir Robert Giffen, refers to a rare type of good where demand increases as the price of the good rises. This phenomenon contradicts the law of demand, which states that as the price of a good increases, the quantity demanded decreases. For a Giffen good to exist, several conditions must be met. Firstly, the good must be an inferior good, meaning that as income rises, people consume less of it. Secondly, the good must represent a significant portion of the consumer's budget, and thirdly, there must be a lack of close substitutes available.
When the price of a Giffen good increases, the income effect outweighs the substitution effect. The income
The existence of Giffen goods is a subject of debate among economists, with empirical evidence for their