When the price of sugar was \"low,\" consumers in the United States spent a tota

Question

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:

a the demand for sugar is elastic. b the demand curve for sugar is upward sloping. c sugar is a Giffen good. d None of the statements is correct. 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

Hi,

Please find the answer as follows:

Option D (None of the statements is correct) is the correct answer.

Thanks.

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