Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
They supply goods and services to producers.
B
They purchase goods and services from producers.
C
They create employment opportunities.
D
They regulate prices of goods and services.
Understanding the Answer
Let's break down why this is correct
Answer
In a product market, consumers play a crucial role by driving demand for goods and services. They are the people who buy products, and their choices influence what businesses produce. For example, if many consumers want more electric cars, companies will likely increase their production of these vehicles to meet that demand. This process helps businesses understand what to sell and at what price, since consumers have different preferences and budgets. Ultimately, consumers help shape the market by deciding which products succeed and which do not.
Detailed Explanation
Consumers buy goods and services from producers. Other options are incorrect because This answer suggests that consumers provide goods and services; This option implies that consumers create jobs.
Key Concepts
Product markets
Topic
Product and Factor Markets
Difficulty
easy level question
Cognitive Level
understand
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