doc__table__251

| (171) | The curvature of demand is the rate at which the responsiveness of demand to price-changes varies as price or output changes. When the demand curve is linear, it has no curvature and the slope is constant. In the case of convex demand, the demand becomes less sensitive to price changes as the price increases. This may be the case if the products or services affected by the overcharge are characterised as essential goods. A hypothetical example may be the demand for drinking water in the desert, because an average customer may be decreasingly sensitive to a price increase as the quantity available is reduced. Conversely, such a customer may be increasingly sensitive to a price increase as the quantity available is increased.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.