"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.

Question

Quizplus · Accepted Answer

Consumer sovereignty is the idea that consumers, through their purchasing decisions, determine what products and services will be produced and sold in the marketplace. Producers are therefore incentivized to produce goods that satisfy consumer demands, rather than producing goods that do not align with consumer preferences. This creates a market-driven economy where decisions of producers ultimately conform to consumer demands.

"Consumer Sovereignty" Refers to the