The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

GIFFEN GOOD Definition & Legal Meaning

Definition & Citations:

Condition seemingly paradoxal that a consumer item, deemed essential to the community, is in greater demand when its price rises, and in less demand when the price falls. This occurred to corn in 19th century England and to the alcoholic beverage ‘shochu’ in modern Japan. Both items were considered ‘essential’ by a section of consumers. To maintain the same level of consumption the consumers spend more of their income as its price increases. They buy more of the same good because they cannot afford the more expensive substitutes. When its price falls the opposite happens. This paradox was first studied and reported by UK economist Sir Robert Giffen (1837-1910).

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.