what is giffen goods

A Giffen good is a product that people consume more of as the price rises and vice versa, violating the basic law of demand. It is a low-income, non-luxury product that defies standard economic and consumer demand theory. Examples of Giffen goods include bread, rice, and wheat, which are commonly essential goods with few near-dimensional substitutes at the same price levels. The term "Giffen goods" was coined in the 19th century by Scottish economist Sir Robert Giffen, who noticed that the rise in the price of a basic food increased the demand for that particular food. Giffen goods are an exception to the general rule of supply and demand, and they challenge the widely accepted law of demand.