2 The demand for a product indicates the intensity of consumers' desire for the item.

The (opportunity) cost of producing the item indicates the desire of consumers for other goods that must now be foregone because the necessary resources have been used in the production of the item. In a market economy, these two forces- demand and costs of production-balance the desire of consumers for more of a good against the reality of scarce resources, which requires that other goods be foregone as more of any one specific item is supplied.