- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 8. Topics in Demand and Supply Analysis
- Subject 3. Substitution Effect, Income Effect, Normal and Inferior Goods
CFA Practice Question
An increase in price of a(n) ______ leads to an increase in the quantity purchased at each price.
A. Veblen good
B. Giffen good
C. inferior good
Explanation: The opposite is true for Giffen goods and inferior goods. Note that Giffen goods are inferior goods.
User Contributed Comments 2
| User | Comment |
|---|---|
| bidisha | Giffen goods are a special type of inferior good. |
| NickGerli | Veblen Goods is related to the prices of products, not consumer incomes. |