Consumers and Producers

Contributor: Meghan Vestal. Lesson ID: 12121

What if there were no food on the shelves at the store? What if there were no store? What if the store was stocked but had no customers! This is why we need producers and consumers. Which one are you?



learning style
personality style
Grade Level
Intermediate (3-5)
Lesson Type
Dig Deeper

Lesson Plan - Get It!

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  • Which of the images shows a producer?
  • Which of the images shows a consumer?

baker and a girl blowing out cake candles

You may have talked about producers and consumers in science when discussing living organisms.

In economics — the study of goods and services — producers and consumers have an entirely different meanings.

  • What do you think producers and consumers are in an economic setting?

Producers are people that create, make, and sell a good or a service.

  • A good is a product that can be bought and sold.
  • A service is work that is performed for others.

The image of the baker, from the beginning of the lesson, is an example of a producer. The baker performs the service of making cakes, cookies, and bread. The cakes, cookies, and bread he makes are examples of goods.

  • Can you think of another example of a producer?
  • Does your example sell a good or a service?

Consumers are the people who purchase and use a good or a service. In the images above, the girl with the cake is an example of a consumer. Someone in her family purchased the cake for her birthday and she is about to eat it. The cake is an example of a good because it is a product, rather than a service, that was purchased.

  • Can you think of another example of a consumer?
  • Does your example purchase a good or a service?

Before moving on to the Got It? section, think about how producers and consumers are connected.

  • Are producers and consumers independent of, or dependent on, one another?

When you are ready, move on to the Got It? section to see if you can identify examples of producers and consumers.

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