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What Will Be the Shape of the Supply Curve and the Elasticity

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Essay

What will be the shape of the supply curve and the elasticity of supply of a good,if the average cost of production increases with an increase in output? If after a point in time,the per-unit cost of production becomes constant how will the shape of the supply curve and the elasticity change?


Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level, holding all other factors constant.

Economy Moves

Economic activities or shifts that influence the overall growth, stability, or direction of an economy.

Supply

The total amount of a specific good or service that is available to consumers at a given price and time.

Quantity Supplied

The amount of a good or service that producers are willing to offer for sale at a particular price over a given period of time.

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