If the price of a staple food item, such as potatoes, increases significantly but total consumer spending on potatoes also rises, what can be inferred about the demand for potatoes?

If the price of potatoes goes up a lot but people are still spending more money on them, it suggests that the demand for potatoes is inelastic. This means that even though the price is higher, consumers still feel they need to buy potatoes, so they are willing to pay the increased price. For example, if the price of potatoes rises from $1 to $2 per pound, but total spending increases because people buy the same amount or even more, it shows they consider potatoes essential. Inelastic demand often occurs with staple foods because there are few substitutes available, and people will prioritize buying them regardless of price changes. Therefore, the higher spending indicates that consumers still value potatoes highly despite the price increase.