The market solves the incentive problem when allocating resources because the:
suppliers will produce the good only if its cost is less than the value of use.
consumers will pay for the good only if its price is greater than the value of use.
suppliers will produce the good only if its value of use is less than the cost.
consumers will pay for the good only if its value of use is greater than the price.
The correct statement regarding how the market solves the incentive problem when allocating resources is:
consumers will pay for the good only if its value of use is greater than the price.
This reflects the idea that consumers are willing to purchase a good when they perceive that the benefit (or utility) they receive from the good exceeds the cost they have to pay for it. This incentivizes suppliers to produce goods that are valued by consumers, leading to an efficient allocation of resources in the market.