Hi,
Can some one please explain what is the difference between giffen goods and inferior goods
Giffen goods are inferior goods, but not all inferior goods are Giffen goods.
Giffen goods are so inferior that the income effect of a price change outweighs the substitution effect. This leads to seemingly unusual behavior: if the price of a Giffen good decreases, the amount of that good demanded will decrease, and if the price increases, the amount demanded will increase.