Add'l Quant

Question 1

substitution effect on Veblen and Giffen goods

Answer 1

both positive - all substitution effects are positive

Question 2

Veblen vs Giffen - inferior or non inferior?

Answer 2

Veblen = not inferior, Giffen Inferior

Question 3

what does an inferior good mean?

Answer 3

inferior good means as price decreases, demand decreases; negative income effect larger than substitution effect