Despite lower price for rice resulting from owning coupon

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Reference no: EM131242349

Evaluate the following statements as true, false, or uncertain. Give a justification for your answer.

Some economists recently gave coupons for reduced-price rice to very poor peasants in China. Despite the lower price for rice resulting from owning the coupon, the peasants actually decreased their consumption of rice. From this alone, we can conclude that rice must be a Giffen good for these peasants.

Reference no: EM131242349

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