Supply and Demand :An Introduction

                             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

                         Supply and demand:An Introduction   T he stock of the foodstuff on the hand at any moment in New York City's grocery stores,restaurants,and privates kitchens is sufficient to feed the area's 10 million residents for the most a week or so.Since most of the residents have nutritionally adequate and highly varied diets,and since requires that millions of pounds of food and drinks be delivered to the locations throughout the city each day.       No doubt many New Yorkers,buying groceries at their favorite local markets or eating at their favorite Italian Hotels,give little or no thought to the nearly miraculous coordination of the people and resources that is required to feed the city residents on a daily basis,But near miraculous it is,nevertheless. Even if the supplying of the of the New York city consisted only of transporting a fixed collection of the operation ,requiring at least a small (and well managed)army to carry out.New York relies on a