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Can supply curve have a negative slope ?

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Asked By: blackdroon0404 18-21, M  4 months ago

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    DreamingTaoTiger - 26-30 years old - male

    Posted by DreamingTaoTiger Jan 2nd, 2013 at 11:59AM

    Avoid negatives. Use another representation.

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  1. blackdroon0404 - 18-21 years old - male

    Reply by blackdroon0404 Jan 2nd, 2013 at 12:04PM

    Another representation as in ?

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  2. DreamingTaoTiger - male

    Reply by DreamingTaoTiger Jan 2nd, 2013 at 12:06PM

    You could draw up the complete curve for all the supplies as a bar diagram and make a normal graph out the input and output. Integration can then show which area's are overflowing or short and you can predict linear growth from the two since the previous resources and the change are known. Also packs into nice color blocks :)

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3 Answers to "Can supply curve have a negative slope ?"

  1. FlattertoDeceive - 18-21 years old - male

    Posted by FlattertoDeceive Jan 2nd, 2013 at 12:01PM

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  2. dawgger - 31-35 years old - male

    Posted by dawgger Jan 2nd, 2013 at 12:00PM

    Yes. When stocks in your warehouse have been recalled.

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  3. blackdroon0404 - 18-21 years old - male

    Reply by blackdroon0404 Jan 2nd, 2013 at 12:05PM

    Wouldnt that mean , the supply has increased and as always the supply will have a positive slope ?

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  4. dawgger - 31-35 years old - male

    Reply by dawgger Jan 2nd, 2013 at 12:10PM

    Not at all. You had a consistent increased supply. Increasing trend. The the supply dropped. Your graph is a horizontal line along the X axis (assuming no sales). The product is now recalled, your graph is now decreasing, since items are being taken out of your warehouse _ not against a demand, but against a recall. Makes sense?

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