Question

Prior to the French Revolution of the 18th century, it has been argued that bread

		was practically without complements.
		was a Giffen good.
		had almost-perfectly inelastic supply.
		had almost-perfectly elastic demand.

Answer 1

Answer) Before French revolution,bread was staple diet of working class and around 40-50% of wages were spent on it but later bread 's scarcity happened owing to destruction of crops leading to increase in prices but still quantity demanded and its consumption increased,workers were spending now 80-90% of their wages on bread,the reason being it was still cheaper than other staple diets and with increase in prices they have to compensate that with replacing more of other part of diet with cheaper bread,that is defying normal economic theory, demand for bread increased with increase in prices,this is a property of giffin good which is good whose demand increases with increase in price and vice-versa,so correct answer is option b) was a Giffin good.

Answer is complete.Thank you!