How do we participate in the market as producers and consumers? Explain with three examples.[CBSE 2013]

We participate both as producers and consumers:

1. We produce goods and services in the market through our jobs. For example, a farmer is the producer of crops.

2. Consumers participate in the market when we buy anything. For example, a mother can buy chocolate for her kid and she becomes a consumer.

3. A person becomes both a consumer and a producer because everyone is interdependent in a society. For example, a farmer has to buy other things like fertilizers where he becomes a consumer although he is producer while growing crops.

Note: We participate in markets as a producer when we contribute our services or sell the goods produced by us. We participate as consumers when we buy anything from the market. It’s an ongoing cycle.