Consumers
Definition
Consumers are individuals or households who purchase goods and services to satisfy their wants or needs.
Analogy
Think of consumers as hungry students at lunchtime. They go to different food stalls (businesses) with money (income) to buy food (goods and services) to fulfill their hunger.
Related terms
Disposable Income: The amount of income left after taxes are deducted from an individual's or household's total income.
Consumer Spending: The total amount spent by consumers on goods and services within an economy during a specific period.
Demand: The desire, willingness, and ability of consumers to purchase a product or service at various prices.
"Consumers" appears in:
Subjects (2)
Practice Questions (1)
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.