What is a giffen good and what does the graph look like?

This video goes over what a giffen good is and what the demand curve will look like for a giffen good.
The trick to understanding a giffen good is that quantity demanded will increase as price increases. Why? Because the good itself is inferior, and it happens to be so inferior that when the price rises the income of the individual is restricted enough that MORE of the good has to be purchased. Eventually the individual will run out of money which then makes the demand curve look like its normal self.
More information on this topic can be found at www.freeeconhel...

[@BobanOrlovic]

Love the way you started this video

[@HDWoodMoviesDotCom]

one more assumption for a good to be a giffen good is that there should be no close substitute of it beacuse if it is not so then with an incrrese in price of good say 'X' consumer will shift his demand to say 'Y' in that case the substitution effect will be positive.

[@chuckn11]

thank you. simple and to the point.

[@sreenidhiaravindan2081]

thank u so much!Such clear delineation!

[@-supernova-8164]

What happen to substitution & income effect if price of giffen good increase?

[@WijthaGayan]

thank you sir

[@isabellaschatz8284]

dont understand why the income effect would be positive on an inferior good,...

[@FreeEconHelp]

isabella schatz you're right it isn't, sorry if it came across that way.

[@siphesihlezulu6705]

For a *price increase* a positive income effect means inferior

[@shikhasinghgs6260]

Yeah me too query

[@noel7777noel]

Griffin goods has (A) no suitable replacement
(B) A must have item.
(C) Unlike veblen goods were the mental disorder of narcissism is at play. (A) and (B) are at play.
Capitalism doesn't mean to hold our must have items for scalping.

[@saifwali3132]

What would you say about price Elasticity of Demand for giffen goods? 😓

[@Faifaifan]

What happens when there is no income effect as a result of compensation? how will the curve look like?

[@cyt0401]

the income effect should be negative on inferior and giffen goods.

[@cyt0401]

by the way. thank you for the video :D

[@siphesihlezulu6705]

But this is for an increase in Price

[@stephenstrang590]

Well done.

[@alinebaruchi1936]

A man is a giffen good

[@michealsraj]

dude when u r explaining increasing effect of price on inferior goods in income effect, u better say increase in price of a commodity does mean decrease in ur REAL INCOME rather than income.. its confusing when u r saying

[@alinebaruchi1936]

What is a man?

[@gurudayal7015]

Thanks a lot