Business, Legal & Accounting Glossary
The term Giffen goods refer to the inferior goods which experience a rise in demand when prices rise and a fall in demand when the prices decrease. However, the term inferior does not always refer to quality. Giffen goods are characterized by decreased demand when consumers are capable of paying for higher-priced goods.
A theoretical concept, Giffen goods are named after its conceptualizer, Sir Robert Giffen, as is pointed out in the book ‘Principles of Economics’ by Alfred Marshall. There is limited proof of the existence of real Giffen goods. However, the presence of Giffen goods has been argued upon by many economists.
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This glossary post was last updated: 2nd April, 2020 | 1 Views.