The term consumer sovereignty refers to:
A)the fact that consumers' choices are limited to what the producers decide to produce.
B)a situation in which the government decides what is produced.
C)the idea that consumers ultimately determine what is produced.
D)the idea that consumers try to maximize their utility.
E)the idea that the preferences of both producers and the government ultimately determine what is produced.

Question

Quizplus · Accepted Answer

Consumer sovereignty is the idea that consumers ultimately determine what is produced. In a market economy, producers will create goods and services based on consumer demand and preferences. This means that consumers have the power to influence producers and shape the market through their purchasing decisions.

The Term Consumer Sovereignty Refers To