How Does 'Consumer Sovereignty' Determine the Types and Quantities of the Goods

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The Answer is Consumers register their preferences for the type and quantity of goods and services they want in the
market when they buy something. The dollars spent are like voting for that product to continue to be
produced. If the dollar votes for a certain product are great enough to create a proﬁt, businesses will
produce and sell that product. In contrast, if the dollar votes do not create suﬃcient revenues to cover
costs, businesses will not produce the product. Thus, consumers collectively direct resources to
industries that are meeting their wants and away from industries that are not meeting their wants.

How Does 'Consumer Sovereignty' Determine the Types and Quantities of the Goods

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How Does 'Consumer Sovereignty' Determine the Types and Quantities of the Goods

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Correct Answer:VerifiedShow Answer

Correct Answer:
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