The upward-sloping segment of the network demand curve represents core users who are less price sensitive, and the downward-sloping segment represents casual users who are more price sensitive.

Question

Quizplus · Accepted Answer

The upward-sloping segment indicates that core users value the network highly and are willing to pay more, while the downward-sloping segment shows that casual users are more sensitive to price changes and may reduce usage as prices increase.

The Upward-Sloping Segment of the Network Demand Curve Represents Core