> Triple price and 1/3 quantity directly follows the linear demand curves they teach in Economics 101.. not sure what else you were expecting. It doesn't follo

> Triple price and 1/3 quantity directly follows the linear demand curves they teach in Economics 101.. not sure what else you were expecting. It doesn't follow a linear demand curve, because we only have two data points (any two points can define a line, so we'd need at least one more to estimate the second derivative). Furthermore, linear demand curve doesn't mean that the price elasticity of demand is 1 - and in fact, unit elasticity would be quite surprising, and it would generally not be desirable for Tesla[0]. But finally, Economics 101 classes don't teach linear demand curves. Every introductory economics textbook I've seen draws them this way because it's easier and it doesn't change the math at the introductory level, but every single one also introduces the concept with an indicator that it's drawn this way for convenience, not because they are teaching linear models. [0] You can come up with somewhat exogenous reasons for wanting to operate in the unit-elastic or inelastic portions of the demand curve, based on the venture model of optimizing for brand penetration, but it's not the place that they'd financially be able to or want to operate in the long run.