If the price-consumption curve is U-shaped then the demand for the commodity is:

Question

Quizplus · Accepted Answer

A U-shaped price-consumption curve indicates that the demand for a commodity is elastic at high prices (consumers are sensitive to price changes and demand decreases significantly with price increases) and becomes inelastic at low prices (consumers are less sensitive to price changes and demand does not significantly decrease with price decreases).

If the Price-Consumption Curve Is U-Shaped Then the Demand for the Commodity