Question

Question 4 of 10

Which of the following best explains how consumers' purchases influence the
decisions of producers?
A. Producers can determine how best to reduce waste by knowing
what consumers don't buy.
B. Producers can predict the effects of new technologies based on
the technologies used by consumers.
C. Producers can figure out what consumers are willing to pay based
on what they buy.
D. Producers can judge whether they have an efficient production
process based on what consumers buy.

Answer 1

C. Producers can figure out what consumers are willing to pay based on what they buy.

Step-by-step explanation:

Considering the available statements, the best statement that explains how consumers' purchases influence the decisions of producers is "Producers can figure out what consumers are willing to pay based on what they buy."

When commodities producers know what consumers usually buy and in what quantity, they can easily understand what length or price they would be willing to pay. This implies that producers know the consumers want, and they make productions accordingly.