Every economic curve illustrates a specific economic condition that is usually simple to understand.

The first thing to consider is the direction of the curve:

1. Is it moving down or is it moving up?

2. Is it concave or convex?

Characteristics of a downward sloping curve:

As the curve moves toward the right of the graph (further away from the Y axis), it begins to approach the X axis.

Characteristics of an upward sloping curve:

As the curve moves toward the right of the graph, it increases its distance from the X axis.