McDonald's introduced the Big Mac in 1968, and it turned out to be a hit. However, the Arch Deluxe, introduced in 1996, was not. The success or failure of a product in the market system is determined by
A) capitalism and entrepreneurship.
B) specialization and exchange.
C) consumer sovereignty and dollar votes.
D) capital goods and roundabout production.

Question

Quizplus · Accepted Answer

The success or failure of a product in the market system is determined by consumer sovereignty and dollar votes, meaning that consumers ultimately decide which products are successful by voting with their dollars. The Arch Deluxe failed because it did not appeal to consumer preferences and tastes. Capitalism and entrepreneurship, specialization and exchange, and capital goods and roundabout production are all important features of the market system, but they do not directly determine the success or failure of individual products.

McDonald's Introduced the Big Mac in 1968, and It Turned