The main difference between a network demand curve and a traditional demand curve is that a
A) traditional demand curve can slope upward indefinitely.
B) network demand curve has an upward slope at lower levels of output.
C) network demand curve has an upward slope at higher levels of output.
D) network demand curve is always either vertical or horizontal.

Question

Quizplus · Accepted Answer

A network demand curve can have an upward slope at lower levels of output due to network effects, where the value of a product or service increases as more people use it. This is different from traditional demand curves, which typically slope downward, indicating that demand decreases as price increases.

The Main Difference Between a Network Demand Curve and a Traditional