The market demand curve for a good shows ________,and the market supply curve shows ________.
A) consumers' willingness to pay for the good; producers' marginal cost of producing the good
B) producers' marginal cost of producing the good; consumers' willingness to pay for the good
C) consumers' willingness to pay for the good; the opportunity cost of producing the good
D) consumers' willingness to pay for the good; producers' total cost of producing the good

Question

Quizplus · Accepted Answer

The market demand curve shows consumers' willingness to pay for the good, while the market supply curve shows producers' marginal cost of producing the good. This is because the market demand curve represents the quantity of the good that consumers are willing and able to buy at a given price, reflecting their willingness to pay for the good. On the other hand, the market supply curve represents the quantity of the good that producers are willing and able to sell at a given price, reflecting their production costs, which are captured by their marginal cost.

The Market Demand Curve for a Good Shows ________,And the Market