-
Consumer’s sovereignty means:
-
- consumers are free to spend their income as they like.
- consumers have the power to manage the economy.
- consumer’s expenditures influence the alloca tion of resources.
- consumer goods are free from government control.
- consumers are free to spend their income as they like.
Correct Option: A
Consumer sovereignty means that buyers ultimately determine which goods and services remain in production. In unrestricted markets, those with income or wealth are able to use their purchasing power to motivate producers. So ultimately it means how the consumers want to spend their incomes.
