5. What is the difference between a consumer and as producer?(1 point)

Answer 1

The main difference between a consumer and a producer lies in their roles in the economic system:

• Producer: A producer is an individual or entity that creates goods or services to meet the needs of consumers. Producers supply products to the market, which can include businesses, manufacturers, and service providers.

• Consumer: A consumer, on the other hand, is an individual or entity that purchases and uses goods or services produced by others. Consumers drive demand in the market by making choices about what to buy and use.

In summary, producers create and provide goods and services, while consumers purchase and use them.