chapter  10
12 Pages

Additional Complications for the Giffen Phenomenon: The Impact of Variable Quality and Sub-Budgets

ByWilliam M. Wadman

William M. Wadman 10.1 The Traditional Giffen Case Intermediate undergraduate students of microeconomics learn of the Giffen Effect. As presented in their texts, the Giffen phenomenon is usually covered after the student has a good understanding of substitution and income effects, and how these relate to individual consumer demand. The Giffen results introduce the prospect of an upward sloping demand curve, and the possibility of unstable markets.