Normal/ Giffen good help?

Question

Ok, say ice cream is a "Figgen" good if one of the following is true:

when the price of cake goes down, the quantity demanded of ice cream goes up OR when the price of cake goes up, the quantity demanded of ice cream goes down.

Can you assume all "Figgen" goods are normal? Or can you assume that no "Figgen" good is a Giffen good?

Answer 1

I may be way off base here, but I'm going to say all "Figgen" goods are normal.  There is nothing in there to prove whether this "Figgen" good is a Giffen good.  The "Figgen" good is a complement to the cake, and a Giffen good is an inferior good that as the price increases, consumption increases because it is kind of a necessity and the good takes up more of your income, therefore you have less to spend on other things and are forced to increase spending on the Giffen good.  The only known example of a Giffen good is during the Irish potatoe famine.  I have been doing some research and cheap beer (Keystone Light, Pabst Blue Ribbon, etc) has characteristics of a Giffen good for college students set on drinking.  Jeez, I don't think I answered your question at all, but I'm not sure I completely understand the question, I'm sorry :-(

Answer 2

i did not get u...m