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In case of Giffen’s Paradox the slope of demand curve is
Negative
Positive
Parallel to X-axis
Parallel to Y-axis
- Option 1, Negative: The typical demand curve slope is negative, meaning demand decreases as price increases. This doesn't apply to Giffen goods.
- Option 2, Positive: Correct Answer The demand curve for a Giffen good is positively sloped. As the price increases, the quantity demanded also increases, contradicting typical demand laws.
- Option 3, Parallel to X-axis: This would mean a constant quantity demanded regardless of price, which is not the case for Giffen goods.
- Option 4, Parallel to Y-axis: This would mean a constant price regardless of quantity demanded, irrelevant to Giffen goods.
In Giffen’s Paradox, the slope of the demand curve is positive. .
By: santosh ProfileResourcesReport error
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