Sufficient condition for the backward bending supply curve

Abstract

In several cases where self-consumption of the production by the producer-cum-consumer is important, public policy debates often consider inter alia the issue of backward bending supply curve of the product. In the present paper, the sufficient condition for obtaining an individual s backward bending supply curve is examined. It is argued that although theoretically the possibility of an individual s supply curve bending backward cannot be ruled out, in practice, it is extremely difficult to find such cases. The market supply curve is even less likely to be backward bending. The policy makers, therefore, need not get concerned about such hypothetical possibilities.