Ordinary Inferior Goods
If the positive substitution effect over weighs the negative income effect, the net result would be an increase in the quantity of the good bought when its price falls. This will be so in case of ordinary inferior goods.
[f, on the other hand, the negative income effect for a good is so powerful that it more than offsets the positive substitution effect, the net result would be a fall in the quantity of the good bought as its relative price falls. The latter case holds good in case of what arc known.
Giffen Goods arc inferior goods. because in their case, income effect is negative; but they arc a special type of inferior goods in as much as in their case negative income effect is stronger than positive substitution effect. In the case of ordinary inferior Goodrich negative income effect is weaker than the punitive substitution effect.
The willpower three idiotically”n~ arc censorial to put a good in the category 01 Geffen.
(i) It should be an inferno good having a large negative effect.
So named after Sir Robert Giffen of Britain, who. ill the mid-19th century, is said to have observed that when the price of bread rose the poor bought more bread and less meat and less of some other more expensive food stuffs.
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