Headlines

Complimentary Demand: Government requires every household to own dogs; owners barking up pet food companies' "trees".

Substitute Demand: Study indicates carrying backpacks is damaging to teens, rolling backpacks now trending.

E l a s t i c Demand: Carbonation of water now inexpensive, soda sales bubble over.

Inelastic Demand: Price of cereal rises with corn, parents pulling on "ears."

News Article:
What comes to mind when you think of corn? Processed foods? Bread? What about pet food? The truth is that it's in most processed foods, and with the price of corn on the rise, foods such as cereal and bread and those fruit juices and beverages become more expensive. And with many kids eating cereal as their daily breakfast meal, it is expected that the demand for cereal will not fall drastically. Sheila, a mother of four commented on the topic, "Another thing to fork over more money for, but I'm going to do it since there is, at least in my family, no alternative for breakfast. We just don't have time to actually cook a meal." From market experts, we've heard that they don't expect a negative effect on the market from this uprising news. "Corn is in many things and people aren't aware of it. They may not purchase corn directly but by purchasing other products, such as cereal, they're keeping up the demand of a highly demanded resource." Although you may not know it, the demand for corn, even when the price rises, is virtually unwavering.