Question

explain how consumers affect which goods and services are produced.

Answer 1

By the demand. When we buy items, and they sell out quickly, (or services), they have a higher demand as we invest our money in that particular service/good. For the hair dressers, for instance. And then, depending how they sell, they either continue, or they go out of business. So its really the consumers & the economy.

Answer 2

supply and demand. If more people want it, it is in greater demand thus the price is more; if less people want it, the opposite is true.