If we are on the upper portion of the market demand curve and the price increases by 10%, the quantity demanded will decrease by more than 10%.

Question

Quizplus · Accepted Answer

When we are on the upper portion of the market demand curve, the price elasticity of demand is relatively high, which means that a small increase in price leads to a relatively larger decrease in the quantity demanded. Therefore, if the price increases by 10%, the quantity demanded will decrease by more than 10%.

If We Are on the Upper Portion of the Market