# Right before Christmas, the price of Christmas trees went up by 30%, while the quantity of Christmas trees sold increased by 80%. Do these figures imply an upward sloping demand curve for Christmas trees? Explain with a diagram.

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Right before Christmas, the price of Christmas trees went up by 30%, while the quantity of Christmas trees sold increased by 80%. Do these figures imply an upward sloping demand curve for Christmas trees? Explain with a diagram.

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Step 1

The demand for Christmas tree in December would increase. Generally when price increase the demand for good would decrease. Here price and quantity demand are positively related because demand for Christmas three is less elastic. In this case the law of demand is violating. The change in quantity demand for Christmas tree is more than that of change in price of Christmas tree. The figure is shown below.

Step 2

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