Consumer sovereignty means that the consumer is?

A. a citizen
B. always independent
C. always wrong
D. always right

Correct Answer:

Option D – always right

Explanation

Consumer sovereignty is an economic concept which refers to the controlling power of consumers, over the custodians of scarce resources, in what final products should be produced. Sometimes the term consumer sovereignty is also used as a hypothesis that the production of goods and services is determined by the consumers’ demand. The power of consumers to determine what goods and services are produced. The theory suggests that consumers, not producers, are the best judge of what products benefit them the most.