The market system is said to be characterized by "consumer sovereignty." This is because
A)a sovereign government determines which consumer goods will be produced.
B)the prices of consumer goods are regulated by a sovereign government.
C)firms must match their production decisions to the consumers' choices.
D)consumer goods are considered to be more important than capital goods.

Question

Quizplus · Accepted Answer

Consumer sovereignty refers to the idea that in a market system, the types of goods and services produced (and their quantities) are ultimately determined by consumer preferences. This means that businesses must align their production with what consumers want to buy, making the consumer's choices sovereign or decisive in the market.

The Market System Is Said to Be Characterized by "Consumer