AsHard Times Burt buys only rotgut whiskey and jelly donuts to sustain him. Also,For Burt, rotgut whiskey isan inferior good that exhibits Giffen’s paradox, although rotgut whiskey and jelly donuts are Hicksian substitutes in the customary sense. So, If price ofrotgut whiskey increases , it will have two different effect on the demand ofjelly donuts . The two effects are the following :- a) Substitution effects :-The substitution effectstates that an increase in the price of a good will encourage consumers to buy alternative goods