When the price of corn was \"low,\" consumers in the United States spent a total

Question

When the price of corn was "low," consumers in the United States spent a total of $3 billion annually on its consumption. When the price halved, consumer expenditures actually decreased to $1 billion annually. This indicates that:

A the demand for corn is elastic

B the demand curve for corn is upward sloping

C corn is a Giffen good

D the demand for corn is inlastic

When the price of sugar was "low," consumers in the United States spent a total of $1 billion annually on its consumption. When the price doubled, consumer expenditures actually increased to $3 billion annually. This indicates that: the demand for sugar is elastic. the demand curve for sugar is upward sloping. sugar is a Giffen good. None of the statements is correct.

Explanation / Answer

D the demand for corn is inelastic

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