Question
Economics Question on Consumer behaviour
Given below are two statements:
Statement-I : The price consumption curve is negatively sloped for a Giffen good.
Statement-II: All Giffen goods are inferior goods but all inferior goods are not Giffen goods.
In the light of the above statements, choose the correct answer from the options given below:
A
Both Statement I and Statement II are true
B
Both Statement I and Statement II are false
C
Statement I is true but Statement II is false
D
Statement I is false but Statement II is true
Answer
Both Statement I and Statement II are true
Explanation
Solution
The correct answer is (A) : Both Statement I and Statement II are true