oboloo Glossary

Fixed Supply Curve

oboloo Glossary

Fixed Supply Curve

A fixed supply curve is a graphical representation of the relationship between the prices of a good or service and the quantity supplied. It shows that business owners are not willing to change their production level no matter what price they can get for the product. This means that within a certain range, the quantity supplied remains constant, while the price fluctuates with changes in demand. The fixed supply curve can be used as an analytical tool to understand how different market conditions affect prices. It also helps in making decisions about pricing policies, contract terms, and other strategic considerations.