Giffen good

Popular Terms
Consumer item having the paradoxical quality of being in greater demand when its price rises, and lower in demand when the price falls. Typically, a giffen good (such as corn in 19th century England and the alcoholic beverage 'shochu' in modern Japan) is one considered 'essential' by a section of consumers. As its price increases, the consumers have to spend a greater portion of their income to maintain the same level of consumption. Since they cannot now afford the more expensive substitutes, they end up buying more of the same good. The opposite happens when its price falls. Named after the UK economist Sir Robert Giffen (1837-1910) who first studied and reported this paradox.

Use 'Giffen good' in a Sentence

The fashion elite frequently create Giffen goods when, for example, a particular style of purse becomes the next 'hot' item.
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The giffen good was rare but useful to understand the psychology and economy behind the purchases and decision making of consumers.
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You should try to take advantage of a giffen good when the demand is high and raise the prices accordingly.
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