The idea that consumers determine what is produced in the economy through their demands is known as
A) a laissez-faire economy.
B) a command economy.
C) consumer sovereignty.
D) free enterprise.

Question

Quizplus · Accepted Answer

Consumer sovereignty is the principle that the consumer's preferences determine the production of goods and services. This concept is central to market economies where consumer demand guides manufacturers on what to produce to meet those demands.

The Idea That Consumers Determine What Is Produced in the Economy