The term consumer sovereignty means that:
A) Government is responsible for protecting consumers' interests
B) What is produced is ultimately determined by what consumers buy
C) There are no limits on what consumers may buy in a market system
D) Producers have strong control over what consumers buy

Question

Quizplus · Accepted Answer

Consumer sovereignty means that consumers have the power to determine what is produced by expressing their preferences through the purchases they make. This is because producers will only continue to produce goods and services that are in demand and profitable. Therefore, what is produced is ultimately determined by what consumers buy. This does not necessarily mean there are no limits on what consumers may buy, nor that government is responsible for protecting consumers' interest, nor that producers have strong control over what consumers buy.

The Term Consumer Sovereignty Means That