Tuesday, January 29, 2008

Giffen goods must be......















While the professor in the class I am TAing discussed Giffen goods, she wrote, "Normal goods must be ordinary." It meant that the goods that you purchase more when you have more income must be the goods whose quantity demanded increases when the price drops. Then she wrote, "Giffen goods must be ?" She then asked for answers from the audience.

A student was very quick to respond and said, "Extraordinary!". That made my day.

(Picture: Prof. Nolan Miller at Harvard's Kennedy School of Government. He and Prof. Robert Jensen at Brown are said to find the first real-world Giffen goods.)

No comments: