Consumer sovereignty encompasses which of the following definitions?

Question

Quizplus · Accepted Answer

Consumer sovereignty is the principle stating that consumers determine the goods and services that producers produce through their purchasing decisions. Therefore, option B, "Consumers dictate the type, quality, and quantity of goods to be provided," best encompasses the definition of consumer sovereignty. The other options are either incorrect or incomplete. For instance, option A, "Consumers have more power than producers," is not necessarily true, as producers may have significant market power that can influence consumer behavior. Option C, "It is noticed and supported by producers," is only partially correct since producers may not always support consumer sovereignty, especially if it conflicts with their business interests. Option D, "Consumers can only decide whether to buy," is also incorrect since consumers also have the power to influence the production process by demanding changes in product features, pricing, and quality. Option E, "It refers to only economic values," is an oversimplification since consumer sovereignty also includes non-economic values such as social and environmental factors that impact consumer decisions.

Consumer Sovereignty Encompasses Which of the Following Definitions