Class 11 Micro Economics Notes · CBSE
Viable and Non-Viable Industry
Viable and Non-Viable Industry — understanding when demand and supply curves intersect and why a non-viable industry never produces. CBSE Class 11 Microeconomics notes with graphs.
Last updated: 16 Sep 2026
Notes
Viable Industry
In a viable industry, supply and demand curves must intersect at some positive point.
Both demand and supply curves intersect each other in the positive range of the X-axis and Y-axis.
Viable Industry
Non-Viable Industry
In a non-viable industry, the supply curve lies above the demand curve as the price is too high for the consumers. It happens when the price, at which producers are ready to produce, is so high that consumers are not willing to buy even a single unit. As a result, the product is not produced.
The demand and supply curves never intersect each other in the positive range of both the axes.
Non-Viable Industry
Viable vs Non-Viable — The Comparison
| Aspect | Viable Industry | Non-Viable Industry |
|---|---|---|
| Meaning | An industry for which the supply curve and demand curve intersect each other in positive axes. | An industry for which the supply curve and demand curve never intersect each other in the positive axes. |
| Position of curves | Demand and supply curves intersect each other in the positive range of the X-axis and Y-axis. | The supply curve lies above the demand curve — the price at which producers are ready to produce is too high for consumers. |
| Result | Market equilibrium is determined at the point of intersection — the product is produced and sold. | Consumers are not willing to buy even a single unit at the producers’ price — the product is not produced. |
Key Takeaways
- A viable industry is one where demand and supply curves intersect in the positive axes — equilibrium is possible. ⭐
- A non-viable industry has supply lying entirely above demand — no intersection, no production. ⭐
- Non-viability arises when the price at which producers are ready to produce is so high that consumers will not buy even one unit. ⭐