What is abnormal supply curve and diagram
This is aset of points showing the amount of acommodity aproducer put on market for sale at agiven price and time period and does not correspond with the law of supply
Is A Supplycurvethatdoesnotfollowthelowofsupply
Abnormal supply curve refers to the diagrammatic illustration of supply curve which shows the total number of production a seller or firm are willing and able to offer for sale at a given price during a particular period of time but goes against the law of supply.
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abnormal supply curve definition
An abnormal supply curve, also known as a backwards bending supply curve, refers to a situation where the quantity supplied of a good or service decreases as the price increases beyond a certain point. It is a relatively rare phenomenon that deviates from the typical upward-sloping supply curves found in most market situations.
To understand and depict an abnormal supply curve, you can follow these steps:
1. Gather data: Collect information about the relationship between the price of a good or service and the quantity supplied.
2. Plot the price and quantity data on a graph: Use a graphing tool or software, like Microsoft Excel or Google Sheets, to create a graph with price on the vertical axis (y-axis) and quantity supplied on the horizontal axis (x-axis). Label the axes accordingly.
3. Determine the shape of the curve: Plot the data points and observe the pattern. If the initial quantity supplied increases as the price rises (consistent with a normal supply curve), the curve will slope upwards. However, if the quantity supplied starts to decline after a certain point, it indicates an abnormal or backwards bending supply curve.
4. Draw the curve: Once you analyze the pattern, connect the data points on the graph with a smooth curve. For a typical abnormal supply curve, the curve will slope upwards initially and then bend down.
5. Label the curve: Add a label or a title to indicate that it represents an abnormal or backwards bending supply curve. You can use text boxes or annotations to provide additional explanations if necessary.
6. Add other elements: To enhance the clarity of your diagram, you might want to include a title, legend, and any other relevant information that supports your analysis.
Remember, an abnormal supply curve is not commonly encountered in most markets, but understanding its concept and how to illustrate it graphically can be valuable for analyzing unique situations where it may occur.