A Giffen good is a good for which demand falls at the same time as its price falls (and vice versa). This upsets the usual relationship between price and demand; it is still hotly debated whether or not such goods exist. The usual example is that of potatoes during the Irish potato famine in the 19th century. At that time, potatoes were the main expenditure of a typical Irish family. As the price of potatoes rose, the demand also rose because no close substitutes were available. This meant that even less was spent on other forms of food, such as meat. Other examples are hard to find. The phenomenon was named by Sir Robert Giffen. Research Giffen Good
The Probert Encyclopaedia was designed, edited and programed by
Matt and Leela Probert
Abbreviations
Research Giffen Good
