Question

Explain how consumer and producers are both “buyers” and “sellers” in the market
place? (5 Marks)

Answer 1

Answer:Producers and consumers are connected by trade and prices. Economic forces like supply and demand determine the extent of the relationship between producers and consumers in a given market.

For example: If bananas are in high demand during the winter, producers will have to up their production to meet consumer expectations. Conversely, if bananas fall in demand, producers will need to scale back production accordingly.

Quantities demanded and supplied are only one half of the equation however. If bananas are falling in demand, the price producers are charging must also fall, otherwise they won’t be able to sell any bananas, and vice verca.

Explanation:hope this may helps u dear.. be happy and stay blessed and safe