The correct answer is: C. Giffen goods
Giffen goods are a type of good that is so essential to a consumer’s budget that, as the price of the good increases, the consumer demands more of it. This is because the consumer’s income is so limited that they are forced to spend a larger proportion of their income on the good, even though the price is higher.
For example, imagine a poor family that lives in a rural area and relies on bread as their main source of food. If the price of bread increases, the family will have to spend a larger proportion of their income on bread. However, they may not be able to afford to buy other goods, such as meat or vegetables. As a result, they may actually end up buying more bread, even though the price has increased.
Normal goods are goods whose demand increases as income increases. This is because consumers have more money to spend on goods and services when their income is higher.
Comforts are goods that are not essential to a consumer’s budget, but that they enjoy having. The demand for comforts is usually not very sensitive to changes in price.
Luxuries are goods that are expensive and that consumers only buy when they have a lot of money. The demand for luxuries is usually very sensitive to changes in price.