In studying the consumption of very poor families in China, Robert Jensen and Nolan Miller found that in both Hunan and Gansu "Giffen behavior is most likely to be found among a range of households that are poor (but not too poor or too rich)."
a. What do Jensen and Miller mean by "Giffen behavior"?
b. Why would the poorest of the poor be less likely than people with slightly higher incomes to exhibit this Behavior?
c. Why must a good make up a very large portion of consumers' budgets to be a Giffen good?