Which of the following statements are necessarily true?
A Giffen good is inferior
A Giffen good cannot be a luxury
A Giffen good cannot be a necessity
For a Giffen good, the substitution effect and the income effect work in opposite directions
For a Giffe

When the price of a Giffen good increases, the income effect is positive. This is because the income effect refers to a change in the perceived purchasing power of the consumer's money. When the price of the good increases, the consumer can buy fewer units, thus reducing their perceived purchasing power. This causes the demand for the good to increase and as a result, the quantity purchased increases.