In the context of factors of production, what two requirements of supply must someone meet to be considered a producer?

• A. They must have government approval and access to technology.
• B. They must be willing and able to supply a good or service.
• C. They must set the market price and control demand.
• D. They must own land and capital.

Answer: (B)

Verified step by step guidance

1. Understand the concept of supply in microeconomics: Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at various prices over a given period.
2. Identify the two key requirements for someone to be considered a producer in terms of supply: they must be both willing to supply the good or service and able to supply it.
3. Being willing means the producer has the desire or motivation to sell the good or service, which often depends on factors like potential profit or market conditions.
4. Being able means the producer has the necessary resources, skills, or capacity to produce and offer the good or service in the market.
5. Therefore, the two requirements of supply are willingness and ability to supply a good or service, which distinguishes actual producers from those who cannot or do not want to supply.