Use the figure below to answer the following question(s) .
Figure 6-2
Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. When the structure of production and consumption for a good places it in quadrant B,
A) consumers have little incentive to search out and patronize low-cost suppliers.
B) private producers of such goods will have little incentive to operate efficiently and to keep prices low.
C) goods and services will only be supplied if consumers are willing to pay an amount sufficient to cover their production costs.
D) both a and b, but not c, will be true.
Correct Answer:
Verified
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