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THE SUPPLY CURVE

                             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 have a lot of high-paying alternatives).For others the opportunity cost of selling pizza is of moderate value,and for still others___like rock stars and professional athletes __it is prohibitively high.In part because of these difference in the opportunity cost among people.they daily supply curve of pizza will be Upward-sloping with respect to price.As an illustrated.

quantity(1000s slices per day)

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