Question

The market system is said to be characterized by "consumer sovereignty." this is because: question 40 options: firms must match their production decisions to the consumers' choices consumer goods are considered to be more important than capital goods the prices of consumer goods are regulated by a sovereign government a sovereign government determines which consumer goods will be produced

Answer 1

The market system is said to be characterized by "consumer sovereignty." this is because firms must match their production decisions to the consumers' choices. The consumer sovereignty assumes that through purchase choices, buyers determine the production of goods. The power of consumers to determine what goods and services are produced; they are the best judge of what products benefit them the most.