Most corn produced in the United States is used for animal feed. The demand for corn is inelastic. These facts mean that
A) there are many substitutes for corn in feeding animals.
B) there are few substitutes for corn in feeding animals.
C) there are no substitutes for corn in feeding animals.
D) animals are not buying the corn themselves, so we cannot learn anything from these facts.

Question

Quizplus · Accepted Answer

When demand is inelastic, it means that consumers (in this case, animal feed producers) do not have many alternatives or substitutes, so they continue to purchase corn even if prices rise.

Most Corn Produced in the United States Is Used for Animal