Comment

Comment by lil_cain

No. The example of a giffen good given is a high calorie food, that's exceptionally low status. Thus, when its price falls, people will demand less of it, as they can afford to replace some of their consumption of that food with more expensive, better food. Workers replacing some proportion of their bread or potato intake with meat, as the price of that bread or potato intake drops, say.

The idea is that the good is the lowest quality way of fulfilling some need - so people buy it because they can't afford anything else.

parent lil_cain 9 years ago

No comments yet

Be the first to share your thoughts.

Live from the official Hacker News API

A modern reader for Hacker News · SvelteKit + Skeleton