Demand tends to be elastic at higher prices and inelastic at lower prices.

Question

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This is the foundation of the law of demand, which states that as the price of a good increases, the quantity demanded decreases, and vice versa. At higher prices, consumers are often more willing and able to find substitutes or reduce their overall consumption, making demand more responsive to price changes (elastic). At lower prices, consumers may already be purchasing as much as they can or want, limiting their ability to further increase consumption in response to price changes (inelastic).

Demand Tends to Be Elastic at Higher Prices and Inelastic