[amp_mcq option1=”make the demand remain constant” option2=”reduce the demand” option3=”increase the demand” option4=”change demand in an abnormal way” correct=”option2″]<\/p>\n
The correct answer is: B. reduce the demand.<\/strong><\/p>\n 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 they are willing to pay more for it as their income decreases. In the case of bajra, a fall in its price would make it less affordable for low-income consumers, who would then switch to other, cheaper foods. This would lead to a decrease in the demand for bajra.<\/p>\n Option A is incorrect because the demand for a Giffen good does not remain constant as the price changes.<\/p>\n Option C is incorrect because the demand for a Giffen good decreases as the price decreases.<\/p>\n Option D is incorrect because the demand for a Giffen good changes in an abnormal way, as opposed to the normal way in which demand changes with price.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”make the demand remain constant” option2=”reduce the demand” option3=”increase the demand” option4=”change demand in an abnormal way” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-53406","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n