• A Giffen good is a low-income, non-luxury product for which demand increases as the price rises, and vice versa.
  • The Giffen product has an ascending demand curve, which contradicts the fundamental laws of demand based on a descending demand curve.
  • Demand for Giffen products is highly dependent on the lack of close substitutes and income pressure.
  • Veblen’s goods are similar to Giffen’s, but with a focus on luxury items.