Cryptocurrency Q&A
Does elasticity of demand increase with price?
Does elasticity of demand increase with price?
Sun Jan 12 2025
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I'm wondering if the elasticity of demand changes when the price goes up. Specifically, does the demand for a product become more elastic as its price increases?
7 answers
Tue Jan 14 2025
The concept of price elasticity of demand often reveals a negative relationship.
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Tue Jan 14 2025
This negative relationship arises because consumers tend to demand less of a product when its price increases.
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Tue Jan 14 2025
This phenomenon is encapsulated in the fundamental "law of demand," which states that as price rises, quantity demanded falls.
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Tue Jan 14 2025
Despite this general rule, there exist two exceptional categories of goods that defy this conventional wisdom.
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Mon Jan 13 2025
The first category is Veblen goods, which exhibit a positive elasticity of demand.
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