Explore BrainMass

Elastic demand

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

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)

© BrainMass Inc. brainmass.com September 24, 2018, 10:17 am ad1c9bdddf - https://brainmass.com/economics/economics-issues/elastic-demand-60106

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