The demand for a product is the quantity of it that people buy.

The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The difference between the marginal cost curve and the marginal social cost curve equals

A) marginal private cost. B) private cost. C) external cost. D) marginal external cost. E) Coasian cost.

When a consumer is able and willing to buy a good or service, s/he creates ____________ .

a. consumption b. demand c. elasticity d. allocation