positively sloped vs negatively sloped

[archived_user]

In plain English, can you please explain positively sloped vs negatively sloped ?
For example, when they say:
in a decreasing-cost industry, the long-run supply curve will most likely be positively sloped.
Thanks

 

[archived_user]

decreasing cost industry - most likely supply will increase …. so positively sloped.
look at the slope of # of items sold vs. time … # of items sold will INCREASE over time … (positive slope)

 

[archived_user]

cpk123 wrote: decreasing cost industry - most likely supply will increase …. so positively sloped.
look at the slope of # of items sold vs. time … # of items sold will INCREASE over time … (positive slope)

With all due respect, a supply curve does not depict quantity vs. time; it depicts quantity vs. price.

Khonglo wrote: In plain English, can you please explain positively sloped vs negatively sloped ?
For example, when they say:
in a decreasing-cost industry, the long-run supply curve will most likely be positively sloped.
Thanks

In a positively sloped supply curve, quantity supplied increases as price increases.
In a negatively sloped supply curve, quantity supplied decreases as price increases.
By the way, do not confuse price with cost. Cost is what the supplier pays (for raw materials, labor, utilities, and so on); price is what the supplier charges its customers.

 

[archived_user]

thanks both cpk123 and S2000Magician .
Are there terms (vacabulary) when:
Quantity supplied increases as price also decreases.
OR quantity supplied decreases as price also decreases .

 

[archived_user]

Khonglo wrote: thanks both cpk123 and S2000Magician.

My pleasure.

Khonglo wrote: Are there terms (vacabulary) when:
Quantity supplied increases as price also decreases.

This is a negatively sloped supply curve.

Khonglo wrote: OR quantity supplied decreases as price also decreases.

This is a positively sloped supply curve; saying that quantity decreases when price decreases is the same as saying that quantity increases when price increases.

 

[archived_user]

You may find it easier to draw the graph rather than understandin/remembering based on words. Under exam conditions, there’s a chance to make mistakes on increase vs decrease…

 

[archived_user]

Khonglo wrote:
in a decreasing-cost industry, the long-run supply curve will most likely be positively sloped.

This is totally WRONG.
In a decreasing-cost industry, the long-run supply curve will become negatively sloped. Negatively sloped supply curve means that producers will be able to produce more goods even for lower prices, that’s why is called decreasing-cost industry. As raw materials prices are expected to decrease over time, and assuming a competitive market, producers will be able to sell their products at lower prices.
A real example for this is the USB products, as new technologies appeared and efficiencies achieved in the industry, USB gadgets started at a price of 500$ the 1mb storage device in 1990 to 20$ the 64gb storage device today in the morning.