Q.What are Giffen Goods ? Why it is called like that ?

Giffen goods are inferior goods whose quantity demanded rises as price rises — an exception to the law of demand — named after Sir Robert Giffen.

What are Giffen goods?

• They are highly inferior goods that form a large part of a poor consumer's budget.
• When their price rises, the consumer becomes so much poorer in real terms that he is forced to buy more of the cheap staple and cut out costlier substitutes, so demand increases with price (and decreases when price falls). This makes the demand curve slope upward — a violation, or exception, of the law of demand.
• Here the negative income effect is so strong that it outweighs the substitution effect.

Why are they called so? …