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Perhaps pizza is not a staple food in the countries DMP operate...

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    Perhaps pizza is not a staple food in the countries DMP operate ?


    Some Examples of Giffen Goods
    Example #1: The price of 1 kg. of potatoes (a staple) goes down from $6 to $2. The vegetable budget of the consumer is, say, $12. Previously he used to purchase 2 kg. of potatoes for $12 every month. After the price plunge, he would want to buy just one kg of potatoes for $2 and with the remaining $10, he can buy a larger variety of other vegetables.

    Example #2: Rice being a staple food of China, it was observed that when the price of rice was lowered the poor people of China behaved in the Giffen manner; reducing their demand for rice and in the remaining amount purchased more meat. When the price of rice was increased, then the demand for rice also increased as they reduced their purchase of meat.

    Example #3: Same kind of behavior was also noticed in some places where bread was the staple food. When the price was lowered, people bought less bread and when the prices became high they consumed more of the bread, thus explaining the Giffen's paradox.
    Read more at Buzzle: https://www.buzzle.com/articles/giffen-good-example.html
 
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