The more consumers are willing to pay for a product_____________________?
Correct answer: A. the more of the product will be produced
- A. the more of the product will be produced
- B. the less producers will manufacture to raise the price still more
- C. the more they go into debt forcing them to stop buying
- D. the more expensive the product becomes
Explanation
Greater willingness to pay represents stronger demand, which gives producers an incentive to expand output when resources and supply conditions permit. A demand increase can also raise the market price, but the basic supply response makes A the intended answer.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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