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Topic Content:
- Abnormal Supply Curve
- Constant Cost Supply
- Fixed Supply or Supply Based on Natural Availability
- Backward Sloping Supply Curve
- In the Case of Perfect Elastic Supply
- A Negative Slopped Supply Curve
A typical supply curve slopes upward from the left to the right indicating that the higher the price, the higher the quantity the producer is willing to supply, the lower the price, the lower the quantity they may likely supply.
See The Factors Affecting Supply of Commodity
But there are some instances when supply does not follow this rule. At times it may slope downward from the left to right, it may be perpendicular to the x-axis or it may slope backward. Below are some of the causes that lead to abnormal supply.
1. Constant Cost Supply:
The increase or decrease in the quantity of output, where the unit cost remains the same. The supply curve is horizontal at a constant level of unit cost.
2. Fixed Supply or Supply Based on Natural Availability:
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