Question

Should purchase of wheat in the wholesale market be treated as the purchase of a final good?

Answer 1

Purchase of wheat in the wholesale market is often done by the traders. Wheat is a consumption good and traders are not the final users of wheat. Therefore, purchase of wheat in the wholesale market is to be treated as the purchase of intermediate good.

However, sometimes the households buy wheat in bulk from wholesale market. In such situations, purchase of wheat should be treated as purchase of a final good.