In the principles of supply and demand, what is the difference when they say by whom it is produced and who are the consumers?
Understand the Problem
The question is asking for a clarification on the principles of supply and demand, specifically about the roles of producers and consumers. It seeks to understand how these roles differ and possibly how they interact within the economic framework.
Answer
Producers create goods/services; consumers purchase/use them.
In supply and demand, producers are those who create goods or services, while consumers are those who purchase and use them.
Answer for screen readers
In supply and demand, producers are those who create goods or services, while consumers are those who purchase and use them.
More Information
Producers and consumers are fundamental roles in economic theory. Producers decide how much to supply based on potential profits. Consumers impact demand based on their willingness and ability to pay for goods and services.
Sources
- Introduction to Supply and Demand - Investopedia - investopedia.com
- Supply and Demand: Why Markets Tick - imf.org
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