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if this is said "a bad is an object whose consumption or presence lowers the utility of the consumer." then we simply means that it refers to the consumer and it provides a demand function.for example if commodity 1 is a good and commodity 2 is a bad,then the demand function will be x1 =m/p1 x2=0 if it would have stand for the producer then it might be called as a "lemon",the term which is actually used in second hand goods market