Q.What do you mean by Giffen goods ?

Giffen goods are strongly inferior staples whose demand moves in the same direction as price, violating the law of demand. Named after economist Sir Robert Giffen.

The law of demand states the usual inverse relationship: when the price of a good rises, its quantity demanded falls, and vice versa. Giffen goods, named after the economist Sir Robert Giffen, are an important exception to this law.

A Giffen good is a highly inferior good that forms a large part of the budget of poor households — the classic example is a cheap staple food such as coarse bread or coarse grain. When its price rises, poor consumers become so much worse off in real terms that they can no longer afford the superior food they used to supplement it with; to fill their stomachs they are forced to buy even more of the cheap staple. Thus a rise in price leads to a rise in quantity demanded. The strong negative income effect outweighs the substitution effect, producing a positively sloped (upward) demand curve o …