Weird Economics Concept of the Week #421

Giffen Good. A Giffen good is a good whereby an increased price means increased demand. Cheap essential foods are sometimes asserted to be Giffen goods, as if the price increases, people can afford less of the pricier foods, and must eat more cheap staples. See this Wikipedia article for more information, as well as the related concept of a Veblen Good. Giffen goods are controversial, and some economists don’t believe they exist.