Economics Part A

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:

  1. Is it moving down or is it moving up?

  2. Is it concave or convex?

Characteristics of a downward sloping curve:

The Shape of the Curve Illustrates the Point-1

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:

The Shape of the Curve Illustrates the Point-2

As the curve moves toward the right of the graph, it increases its distance from the X axis.

The Shape of the Curve Illustrates the Point598The Shape of the Curve Illustrates the Point