When the price of corn was "low," consumers in the United States spent a total of $8 billion annually on its consumption.When the price halved,consumer expenditures actually DECREASED to $6 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 inelastic.

Question

Quizplus · Accepted Answer

This indicates that the demand for corn is inelastic, meaning that the change in price did not significantly impact the quantity demanded by consumers.

When the Price of Corn Was "Low," Consumers in the United