Q. Consider the following statements:- Giffen goods violate the law of demand.
- Veblen goods are basic necessities.
Select the correct option from the codes given below:
Answer:
Only 1
Notes: Giffen goods are exceptions to the law of demand as their demand rises with an increase in price. Veblen goods, on the other hand, are luxury goods whose demand increases as their price increases due to their status symbol appeal. They are not considered basic necessities, making only statement 1 correct.