Asked by Victoria Konko on Jul 05, 2024
Verified
The term consumer sovereignty means that
A) government is responsible for protecting consumers' interests.
B) what is produced is ultimately determined by what consumers buy.
C) there are no limits on what consumers may buy in a market system.
D) producers have strong control over what consumers buy.
Consumer Sovereignty
The concept that consumers have the ultimate control over the goods and services produced by economies based on their preferences and spending choices.
Market System
An economic organization where choices relating to the investment in, production of, and distribution of goods and services are influenced by supply and demand dynamics, and where the prices are freely set in an open market pricing system.
Consumers Buy
Consumers buy refers to the action of individuals or households purchasing goods and services for personal use, driven by preferences, income, and prices.
- Understand the concept and implications of consumer sovereignty in a market economy.
Verified Answer
SQ
sdeeq qadanJul 10, 2024
Final Answer :
B
Explanation :
Consumer sovereignty is the principle that consumers determine the production of goods and services through their buying decisions in a market system. In other words, producers respond to consumer demand, and the choices consumers make ultimately determine what is produced. It does not mean that consumers have unlimited power to buy anything they want or that the government is responsible for protecting consumers' interests.
Learning Objectives
- Understand the concept and implications of consumer sovereignty in a market economy.