Use the Figure Below to Answer the Following Question(s)

question 321

Multiple Choice

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.