According to the Law of Demand, there exists a negative relationship between the quantity demanded of a good and its price, ceteris paribus.
However, there is a positive relationship between the quantity demanded of a Giffen Good and its price, in case of which the negative income effect of a price change outweighs its substitution effect so that a fall in the price of the given good leads to an increase in its quantity demanded and vice versa. Thus, Giffen Goods are an exception to the Law of Demand.
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