Through their spending decisions, consumers give entrepreneurs

the money with which they bid on worker hours, oil, land, equipment,

and other inputs. The prices of the inputs reflect how

urgently those resources are needed in certain lines, to produce

particular goods and services that some consumers desire.

Loosely speaking, a profitable business is taking undervalued

resources and transforming them into outputs that have a higher

value, while an unprofitable business is wasting resources on

projects that are not as valuable as alternatives.

Sample Partial Credit Answer

If consumers want something they will pay a lot for it.