what is the difference between a giffen good and an inferior good 
the term giffen goods named after the scottish economist sir robert griffin refers to goods whose demand increases even if prices rise largely because there are few substitutes or alternatives for them a classic example of a giffen good would be a basic food staple such as rice if consumers have no choice but to purchase the staple they will continue to do so even if it becomes more expensive in fact because these purchases will consume a greater share of their income demand for giffen goods will actually increase with higher prices the limits on disposable income make slightly higher options even more out of reach 