The Demand and Price of Giffen Goods under the Pandemic

Take China’s Market as an Example

DOI

10.2991/aebmr.k.220603.203How to use a DOI?

Keywords

Giffen goods; Giffen phenomenon; COVID-19 pandemic; Price analysis

Abstract

Under the influence of the global COVID-19 pandemic, various commodity markets have undergone great changes with the global economic recession. Giffen products have gradually increased with the spread and worsening of the pandemic. This paper introduces the origin and economic implication of Giffen commodities as a foundation, analyzes the Giffen phenomenon in the era of the epidemic with some real life examples, and proposes related solutions to this anomaly, the Giffen phenomenon. It is found that the main cause of this phenomenon under the pandemic is the sharp reduction in supply under a high demand, which stems from psychological worries about future survival. As the pandemic starts to appease, the prices of Giffen goods show the trend of returning to normal, and the government should take the responsibility of regulating the extremely high price.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Zhiyu Zhou
PY  - 2022
DA  - 2022/07/01
TI  - The Demand and Price of Giffen Goods under the Pandemic
BT  - Proceedings of the 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022)
PB  - Atlantis Press
SP  - 1250
EP  - 1254
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220603.203
DO  - 10.2991/aebmr.k.220603.203
ID  - Zhou2022
ER  -