In 1 or 2 sentences, describe how both producers and consumer use money.

Producers and consumers use money in very different ways.

Producers

Producers use money in order to obtain materials, hire workers, and invest in training/technology. The hope of producers is that spending money on the aforementioned resources will result in his/her company generating more profits for their business.

Consumers

Consumers use money in order to obtain resources, goods, or services they want or need. For example, consumers use money for things they need such as food and water. Consumers also use money to buy goods they want like cell phones, televisions, or cars.

Producers are people or businesses that use capital (money) and labor in order to create goods and services that can be used by consumers. Consumers, on the other hand, are those that have needs (things that are necessary for survival) and wants (things that they desire) that are satisfied by the goods and services that the producer creates, and that consumers acquire through the exchange of money.

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