Which of the following concepts explains how individual consumers in market economies determine what is to be produced?
A)Competition
B)Consumer sovereignty
C)Efficient resource allocation
D)Free enterprise
E)Centralized decision-making

Question

Quizplus · Accepted Answer

Consumer sovereignty is the concept that individuals in a market economy have the ultimate power to determine what goods and services are produced through their buying decisions. In other words, producers will create products based on what consumers demand and are willing to pay for, giving consumers control over the production process.

Which of the Following Concepts Explains How Individual Consumers in Market