In reply to Harry Veeder's message of Fri, 25 May 2007 16:18:55 -0500: Hi, [snip]
Giffen makes the mistake of measuring demand by the total amount spent on the product rather than the actual number of items traded. >Giffen paradox >(c.1895) >Proposed by Scottish economist Sir Robert Giffen (1837-1910) from his >observations of the purchasing habits of the Victorian poor, Giffen paradox >states that demand for a commodity increases as its price rises. > >Giffen paradox is explained by the fact that if the poor rely heavily on >basic commodities like bread or potatoes, when prices are low they might >still have some disposable income for purchases of other items. >As bread or corn prices rise, these other purchases are no longer possible, >thereby forcing the poor to concentrate all their purchasing power on the >bread or corn. It should not be confused with products bought as status >symbols or for CONSPICUOUS CONSUMPTION. > >Source: >R Giffen, Economic Inquiries and Studies (London, 1904) > > Regards, Robin van Spaandonk The shrub is a plant.
