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This is probably not an example of a Giffen good. Rather, it’s better categorized as a Veblen good. The increasing consumption of Giffen goods with higher prices is predicted by the standard rational-agent economic theory, and requires the good to be a dominant portion of a consumer’s expenditures. This condition is hard to satisfy, and is typically only found in situations where the price of a staple food increases. Veblen goods, on the other hand, are those that are consumed precisely because of their high price, and are not predicted by standard microeconomic theory.


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