What is consumer sovertity?

Answer 1

Consumer sovereignty is the economic theory that consumer preferences and choices dictate the production of goods and services in a market economy. It suggests that producers must respond to the demands of consumers, as their purchasing decisions ultimately determine what is offered in the marketplace. This concept emphasizes the power of consumers in shaping the economy through their spending habits and choices. Essentially, it highlights the idea that consumers are in control of driving demand and influencing supply.