THE SUPPLY CURVE In the market for pizza.the Supply Curve is a simple schedule or graph that tells us, for each possible price,the total number of slices that all pizza vendors would be willing to sell at that price.What does the Supply Curve of pizza look like?the answer to this question is based on the local assumption that suppliers should be willing to sell additional slices as long as the price they receive is sufficient to cover their opportunity costs of supplying them.thus,if what some one could earn by selling a slice of pizza is a sufficient to compensate her for what he could earn if she had spent her time and invested her money in some other way ,he will not sell that slice.Otherwise,she will. Just as buyers differ with respect to the amounts they are willing to pay for pizza,sellers also differ with respect to their opportunity cots of supplying pizza.Selling pizza is relatively low(because such individuals typically do not hav
The Demand Curve In the market for the Pizza,the demand Curve for pizza is a simple schedule or graph that tells us us how many slices people would be willing to buy at different prices.by convention,economies usually put prices on the vertical axes of the demand curve and the quantity on the horizontal axes. A fundamental property of the demand curve is that is downward curve sloping with respect to price.For example,the demand curve for pizza tells us that as the price of pizza falls,buyers will buy more slices.Thus the daily demand curve for pizza in Chicago in a given day might look like the curve seen in the figure bellow. The demand curve in the figure tells us that when the price of pizza is low say $2 per slices --buyers will want to buy 16000 slice per day,whereas, where they will want to buy only 12000 slices per day at the price $3,an only 8000,at the price for $4.The demand curve for pizza --as for any other good --slope