Which of the following is correct with respect to Giffen goods? |ForumIAS

[A] Good that people buy more as their incomes fall

[B] Good on which people spend a small portion of their income

[C] Good that has a vertical demand curve parallel to the y-axis

[D] Good that people buy more as its price increases

Answer: D

Notes:

Giffen Good

The good for which the demand increases as its price increases, rather than falls is known as Giffen goods-named after Robert Giffen (1837–1910).
It is a product that people consume more as the price rises and vice versa violating the basic law of demand in microeconomics.
It applies to the large proportion of the goods belonging to the household goods (as flour, rice, pulses, salt, onion, potato, etc. in India)—an increase in their prices produces a large negative income effect completely overcoming the normal substitution effect with, people buying more of the goods.
Examples: Bread, Rice, and Wheat.

Source: NCERT