The Shape of the Curve Illustrates the Point
Every economic curve illustrates a specific economic condition that is usually simple to understand.
The first thing to consider is the direction of the curve:
Is it moving down or is it moving up?
Is it concave or convex?
Characteristics of a downward sloping curve:
As the curve moves toward the right of the graph (further away from the Y axis), it begins to approach the X axis.
Characteristics of an upward sloping curve:
As the curve moves toward the right of the graph, it increases its distance from the X axis.