Explain the he demand for corn

Reference no: EM13175719

When the price of corn was "low," consumers in the United States spent a total of $3 billion annually on its consumption. When the price halved, consumer expenditures actually decreased to $1 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 inlastic

Reference no: EM13175719

Questions Cloud

What factors might cause this nation to produce : Suppose this society produces twenty million tons of food and six million tractors per year. Is it operating on its production possibilities frontier? d. What factors might cause this nation to produce at a point within its production possibilities f..

Determine how the economy is performing : In 1982, nominal GDP decreased by 2% while real GDP increased 4%. What explains the difference between nominal GDP and real GDP? Which is a better indicator of how the economy is performing?

Show a breakdown analysis : A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: ln M = 14.666 + .021 ln C ? 0.036 ln r, where M denotes real money balances, C is an index of consumer confidence, and r is the in..

How the demand for sugar is elastic : 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.

Explain the he demand for corn : When the price of corn was "low," consumers in the United States spent a total of $3 billion annually on its consumption. When the price halved, consumer expenditures actually decreased to $1 billion annually.

Explain the rationale : Analyze the various exchange-rate systems (floating, managed floating, adjustable pegged, and crawling pegged) and determine which would be most beneficial to the following stakeholders: the U.S. Government

What will be the excess demand for apartments : Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by Qs = -1000 + 20P

How to use third degree price discrimination : Cinema Theater has estimated the following demand functions for its movies: Daytime demand, QD = 400 - 50 PD Nighttime demand, QN = 200 - 20 PN The marginal cost of serving another customer is $5 and its fixed costs are $100.

Explain inflation rate-aggregated demand and output : Explain how each of the folloowing variables will be affected by proposed steps that you have identified in the first part of the decussion: Money supply, interest rate, inflation rate, aggregated demand and output.

User Account

All Pages