Chapter 11.1, Problem 4R

To determine

To state: Significance of consumer sovereignty.

Answer to Problem 4R

Consumer sovereignty is successful because it considers consumer as the king of the market.

Explanation of Solution

Consumer sovereignty considers consumers as the king of the market and if the consumers are satisfied, it is bound to be successful. Under consumer sovereignty, the consumers are given liberty to select, compare, different firms and suppliers for their satisfaction in the product. They are provided with a wide variety of options to choose from, so they hold the power to accept or reject the product.

Economics Concept Introduction

Introduction: Consumer sovereignty refers to the role of customer as the king of the market when defining the kinds of products and services manufactured.