How the demand for sugar is elastic

Reference no: EM13175720

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. This indicates that:
a the demand for sugar is elastic.
b the demand curve for sugar is upward sloping.
c sugar is a Giffen good.
d None of the statements is correct.

Reference no: EM13175720

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