"Consumer sovereignty" refers to the:

A) fact that resource prices are higher than product prices in capitalistic economies.
B) idea that the pursuit of self-interest is in the public interest.
C) idea that the decisions of producers must ultimately conform to consumer demands.
D) fact that a federal agency exists to protect consumers from harmful and defective products.

Consumer Sovereignty

The idea that consumers' preferences and choices dictate the types and quantities of goods and services produced by an economy.

Producer Decisions

The selections made by firms regarding the production of goods or services, including what, how, and for whom to produce.

Consumer Demands

The desire, willingness, and ability of consumers to purchase goods and services at various price levels.