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I learnt that giffen good doesn't satisfy the law of demand, but can we draw an offer curve to represent giffen good?

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    $\begingroup$ Yes, that is possible, both for a price and an income offer curve. What exactly is your question? $\endgroup$
    – Giskard
    May 27 at 19:10
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    $\begingroup$ Also, you have a lot of answered questions; consider accepting some answers. $\endgroup$
    – Giskard
    May 27 at 19:12
  • $\begingroup$ @Giskard-How would it look like? Any reference points? The internet is filled with interior and normal, haven't encountered any example highlighting the case of giffen good. PS I just accepted some of the answers. $\endgroup$
    – user31619
    May 27 at 19:41
  • $\begingroup$ How would what look like? Price offer curve or income offer curve? And will you be satisfied with just a graph? $\endgroup$
    – Giskard
    May 27 at 19:47
  • $\begingroup$ Price offer curve.. a graph should be fine :) $\endgroup$
    – user31619
    May 27 at 19:53
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Below is a graph of the price offer curve of good $y$ when income is $48$ units, $p_x = 8$ and the utility function is $$ U(x,y) = \min\left(2x+2y,x+10\right). $$ (Based on "Simple Utility Functions with Giffen Demand" by Sørensen).
Good $y$ exhibits Giffen behavior when $0 < p_y < 8$.

enter image description here

A gif of the optimal choice changing as $p_y$ changes is presented below (budget set is grey, indifference curve and optimal bundle are green, income-offer curve is orange dashed line):

enter image description here

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  • $\begingroup$ Thanks!! I'll read your link to understand more. $\endgroup$
    – user31619
    May 27 at 20:05