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on 05-Jun-2016 (Sun)

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Flashcard 1343469522188

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #has-images #schweser
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Question
A Giffen good is an inferior good for which the [what outweighs what] when price falls.
Answer
negative income effect outweighs the positive substitution effect

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A Giffen good is an inferior good for which the negative income effect outweighs the positive substitution effect when price falls.

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