Posted by Anjali Kaur on Jun 17, 2020

Is Bread Always Considered As A Consumer Good?

Today, I have decided to answer a question from national income accounting. This question is very common and readily available in many books and other online sources. I would also like to do my part in answering this question as per my understanding level. Let’s learn.

We have already discussed the meaning of consumer goods; these are those goods that satisfy the wants of a consumer directly. Now, let’s find the answer to the above question. Is Bread Always Considered As A Consumer Good?

Solution

Well, the answer to the above question depends on the end-use of the bread. In simple words, if someone purchases bread for consuming at home with their family then it is a consumer good because bread is purchased for consumption purposes and not for resale. Now, if the bread is purchased by some bakery for making sandwiches (final good) for selling in the market, then the bread is acting as an intermediate good. In this scenario, bread is used as an input in the sandwich hence it is not a consumer good for that bakery, because they are using it for resale and not for consuming. So, the final answer is ‘NO’, bread is not always considered as a consumer good as it depends on the person and the purpose of buying the same.

If the purpose is consumption then it is a consumer good, and if the purpose is for reselling the bread either by changing its form or just as a vendor then it is considered as an intermediate good.

I hope it was helpful.

Photo by Youjeen Cho on Unsplash

Learn with Anjali started because there wasn't an easy-to-consume resource to help students with their studies. Anjali is on single-minded mission to make you successful!

If you would like to suggest topics, leave feedback or share your story, please leave a message.

Leave a message