| Summary: | After the increase in the demand for corn to produce ethanol last year, the international price of corn went up by 65%, which in turn made the tortilla price to go up between 40% and 100%. In response, both the federal and local governments triggered urgent actions to keep prices from increasing and affecting poor people.<br /><br /> The purpose of this paper is to determine the factors that compose the demand function of tortilla. In addition, we want to specify the effect of a change in each of those factors. In particular, we wish to find out the effect of a price change in the consumption of tortilla. We conclude that in Colima- Villa de Álvarez the demand for tortilla has almost null price-demand elasticity. The main reason is that the tortilla is an inferior good in the sense that a price increase affects more to poor families than to rich ones.
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