ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumers play a vital role in a market economy because they have the power to influence what products and services are produced through their purchasing decisions. When consumers demand more of a particular product or service, businesses will produce more of it to meet that demand.

Detailed explanation-2: -Consumers have the ultimate power in the market place. In our free enterprise system, consumers actually exercise the power to determine what will be produced and at what price.

Detailed explanation-3: -Consumer sovereignty is the economic concept that the consumer has some controlling power over goods that are produced, and the idea that the consumer is the best judge of their own welfare.

Detailed explanation-4: -Consumer Sovereignty In a free market, producers are incentivized to produce what consumers want at a reasonable and affordable price. In general, consumers have more choices for what goods and services to purchase. This choice is called Consumer Sovereignty.