inwardsloping

Inwardsloping refers to a condition in economics where the supply curve of a good or service slopes inward, meaning that as the price increases, the quantity supplied decreases at a decreasing rate. This is in contrast to outwardsloping supply curves, where the quantity supplied increases at an increasing rate as the price rises. Inwardsloping supply curves are often observed in markets where production costs increase significantly with the scale of production, such as in the case of natural monopolies or public goods. The inwardsloping nature of the supply curve can lead to inefficiencies in resource allocation and higher prices for consumers, as the marginal cost of production increases more slowly than the price. This concept is crucial in understanding the behavior of supply in various economic contexts and the implications for market equilibrium and policy-making.