[This is part of the series: The Complete Guide To Economics 101.]
What is a giffen good?
A Giffen Good is a good or service that violates the law of demand.
Specifically, it is when the demand for a good increases, as the price increases.
I don’t know.
This is the unicorn of the economics world.
The classic example is potatoes during the Irish potato famine.
Potato prices were rising, people were starving, and potato demand increased for fear of being able to afford fewer and fewer potatoes in the future.
This example is disputed.
Others have pointed to gasoline as an example, for certain customers.