Giffen good(redirected from Giffen paradox)
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Related to Giffen paradox: Giffen goods
Giffen gooda GOOD for which quantity demanded increases as its PRICE increases, rather than falls, as predicted by the general theory of DEMAND. It applies only in the highly exceptional case of a good (see INFERIOR PRODUCT) that accounts for such a high proportion of households’ budgets that an increase in price produces a large negative INCOME EFFECT, which completely overcomes the normal SUBSTITUTION EFFECT. See PRICE EFFECT, UPWARD-SLOPING DEMAND CURVE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005