QAEconomics › Consumer sovereignty refers to the:
Q

Consumer sovereignty refers to the:

1) fact that resource prices are higher than product prices in capitalistic economies

2) idea that the pursuit of self-interest is in the public interest

3) idea that the decisions of producers and resource suppliers with respect to the kinds and amounts of goods produced must be appropriate to consumer demands

4) fact that a federal agency exists to protect consumers from harmful and defective products

A

The term “consumer sovereignty” is used to describe an economic phenomenon where the consumer determines what the market should provide. It means that the general success of the production of goods and services is decided by what the consumer has a demand for. It shows that the consumer has some power and say in determining the kind of products and services that shape the market, and this is done specifically through their preferences.

In other words, consumer sovereignty refers to the concept that the choices of producers, considering the kind and amounts of goods produced, must be in line with consumer demands.

3 months ago
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