Question

Consumers play a vital role in the economy of a nation because:

विकल्प

• they are source of demand for all goods/services.

• different consumers have different types of demand which will encourage producers to produce various types of goods in the market.

• they are source of demand for all goods/services and different consumers have different types of demand which will encourage producers to produce various types of goods in the market.

• neither they are source of demand for all goods/services nor different consumers have different types of demand which will encourage producers to produce various types of goods in the market.

Answer 1

They are source of demand for all goods/services and different consumers have different types of demand which will encourage producers to produce various types of goods in the market.

Explanation:

Consumers play a vital role because they are the source of demand for all goods and services produced in an economy; the greater the demand, the larger the production of goods and services. Different consumers have different types of demand and preferences, which encourages producers to diversify their products, producing various types and designs to attract different consumers. Thus, consumers not only stimulate production by creating demand but also encourage product diversity in the market.