If the price increases and the sales do also, does the demand curve have an upward slope?

If the price of a product increases yet the sales do also, does this mean that the demand curve for this product is upward sloping. Please do let me know if you have the answer.

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3 Responses to “If the price increases and the sales do also, does the demand curve have an upward slope?”

  1. Victor says:

    Think like this: what kind of commodity is it that people want more of it as the price rises? For which the demand curve slopes upward, instead of downward.

    Generally, this goes against common sense and everyday experience but there are two such product-types for which it could be true.

    First, it may be a luxurious good; the luxury-nexus comes from its price. It happens among speculators in gold, diamonds, fine wines, rare antiques and works of art. The higher the typical price in auctions, the greater will be the demand to obtain some of the commodity.

    Second, a highly inferior commodity which is also a staple for life in a community. Such is said to be the case with low-grade rice in Asia, cassava and other roots in Africa, and potatoes in poor rural communities in Eastern Europe. The mechanism goes like this: if the price of the basic foodstuff rises, then higher-grade foods cannot be afforded at all. So people will try to obtain as much of the low-grade food as they can get their hands on. They stop buying meat and fresh fruits because they are expensive although better nutrition. They spend more on basic foodstuffs. This is called the Giffen Case, after Sir Robert Giffen [1837-1910], a Scottish statistician. His statistical findings were based on the Irish potato famines of 1845-49 and 1875. They were adopted immediately by the famous economist Alfred Marshall, who spent much time and effort finding justification for the concept. In fact, Giffen never referred to the phenomenon that is named after him !

    Is that helpful?

  2. Aha! says:

    We may be looking at a luxurious good. i.e. the more expensive it is, the more people want it or are willing to pay more for it. Essentially, as income increases, the more it is demanded.
    Demand curves do not usually slope upwards like most goods, unless it’s a Giffen good (see link)

    Hope this helps

  3. Johnny says:

    The demand curve is almost always slopping downwards like the other person said. If demand is increasing and so is price, that shifts the entire demand curve to the right.

    Follow my reasoning on this…make sure I’m not losing my mind haha.

    Supply slopes upward; Demand slopes downward.

    Equilibrium is where they meet.

    If we shift the Demand to the right and leave the upward sloping Supply curve the same. That would mean where the equilibrium is would be higher up thus increasing price and demand.

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