Giffen goods may be defined as those goods whose price effect is . . . . . . . . and income effect is . . . . . . . .

positive, negative
negative, positive
positive, elastic
negative, elastic

The correct answer is: A. positive, negative.

A Giffen good is a good for which the demand increases as the price increases. This is because the good is a necessity for the consumer, and as the price of the good increases, the consumer’s real income decreases, which causes them to consume more of the good.

The price effect of a Giffen good is positive because the consumer demands more of the good as the price increases. The income effect of a Giffen good is negative because the consumer’s real income decreases as the price of the good increases.

Option B is incorrect because the income effect of a Giffen good is negative. Option C is incorrect because the price effect of a Giffen good is positive, not elastic. Option D is incorrect because the income effect of a Giffen good is negative, not elastic.