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Elastic demand

Cost of corn is low and patrons in the US spend 3 billion yearly on its consumption. The cost has doubled, patron spending in reality has gone up to 4 billion yearly. This is an a sign of?

(demand for corn is elastic, demand curve for corn is upward sloping, corn is a giffen good, corn prices violate the law of demand, none of the above)

Solution Preview

None of the above as demand for corn is inealstic
say original price is 1 , new price is 2 then change in ...

Solution Summary

This discusses the concept of elastic demand supported by the example

$2.19