Evaluate the role of the american consumer and the american producers in a capitalist system?

Question

please help with this questaion

Answer 1

Consumers represent the utility part of the economy. They use their resources in order to purchase the goods they want. The maximum amount they are willing to pay is the benefit they get something

Producers on the other hand represent the costs part of the economy. The minimum amount they are willing to accept is the marginal cost of producing the product (the cost of producing that unit).

Thus no product gets sold unless the benefit to society is greater than the value of the resources. I.E. resources are allocated to maximize benefit.

Answer 2

American consumers are greed based and they love to buy things and use credit. The more the better.

This stimulates American producers to make more products.

When the economy gets bad, then the consumers stop spending and it kills the producers.