Which statement accurately explains the difference between consumers and producers?

A) Consumers set prices; producers negotiate them.

B) Consumers support markets; producers reject them.

C) Consumers supply goods and services; producers demand them.

D) Consumers buy goods and services; producers make them.

Question

Michael Landry

History

20 November, 04:35

Which statement accurately explains the difference between consumers and producers?

A) Consumers set prices; producers negotiate them.

B) Consumers support markets; producers reject them.

C) Consumers supply goods and services; producers demand them.

D) Consumers buy goods and services; producers make them.

+2

Answers (2)

Know the Answer?

Nadia Freeman · Answer 1

The answer is D consumers buy goods and services; producers make them

Jerry Barton · Answer 2

The correct answer is "Consumers buy goods and services; producers make them."

Indeed, basic capitalistic theory states that it is the Market that sets prices and their negotiation may take place between consumers and producers or consumers and intermediaries (the latter is more likely and frequent). Consumers do not "support markets", at least non consciously, they do that by buying what producers manufacture and withdraw their support if the product is unsatisfactory by not buying such products. Goods and services are provided by producers and consumers will only consume them if the price and the quality are right.