True.
On uncompensated demand curve is upward sloping and the
compensated demand curve is downward sloping. Because,
- Uncompensated demand curve is given by Marshall. He suggests
that, how change in price and income causes the change in
demand.
- According to him in case of giffen good, if the price of a
commodity increases then the demand will also increase and vice
versa. This shows a direct relationship between price and demand
hence the curve is upward sloping.
- Compensated demand curve was given by hicks, he demonstrated
that how demand is affected by substitution goods and its
utility.
- According to him, in case of giffen goods (strongly inferior
goods), even if the price of the commodity increases the demand of
the commodity decreases due to substitution effect. This shows an
indirect relationship between the price and demand. Hence, the
curve will be downward sloping.