# Tag Info

1 vote

### Are grains a Giffen good? Also does circumstances make a good - Giffen good?

Giffen good has to be inferior good for which income effect dominates the substitution effect and typically lacks close substitutes (Frank Microeconomics and Behavior 103-104). Hence, first you have ...
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### Is there a situation when a shift in supply and demand leads to a shortage?

This thinking is not completely correct. You seem to be confused about quantity demanded and demand and quantity supplied and supply. Demand is the whole relationship between price and quantity ...
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The Marshallian demands are functions $x_i(p_1,p_2,m)$. You treat $m$ as an independent variable rather than $p_1 x_1 + p_2 x_2$. Since the demands don’t depend on the cross prices (as they don’t ...