In the context of demand, a Giffen good is one for which:
A. Demand is independent of price
B. Demand is perfectly elastic
C. Demand increases as price increases
D. Demand decreases as price increases
Answer: Option C
Solution (By JKSSB Mock Tests)
A Giffen good is an inferior good for which the income effect outweighs the substitution effect, leading to an upward-sloping demand curve (demand rises when price rises).
Explanation:
Revenue expenditure is incurred for the normal running of government departments and does not result in the creation of assets or reduction of liabilities.
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