Elmer is a dimwitted hunter who's "wooking for wabbits." Bugs proceeds to confuse, bamboozle, and otherwise humiliate the poor simp.
The producers' reaction to the gag of Bugs responding to a hunter pointing a gun at him with a confident casual remark, "What's up, Doc?" was so favorable that they decided to make that a standard element of future films featuring the character.
Elmer Fudd:
Be vewy, vewy qwiet. I'm hunting wabbits.
In the 1944 Blue Ribbon reissue of this cartoon, when the WB shield zooms in the copyright notice briefly says MCMXLIV(1944) for a fraction of a second before changing to MCMXL(1940)!
When the cartoon was re-released as a Blue Ribbon re-issue, it was inadvertently retitled "The Wild Hare." Also, one of the names Elmer Fudd guesses was changed from Carole Lombard, who had recently died in a plane crash, to Barbara Stanwyck.
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