Question

___________ is a myth since the wants of the consumers are influenced by the producers through advertisement, propaganda and salesmanship.

• A. Production decisions
• B. Consumer sovereignty
• C. Optimum consumption set
• D. None of the above

Answer 1

Answer: (B)

Consumer sovereignty

In price mechanism, the market decides the price of each and every commodity therefore producers become the price taker but they try to influence consumers by the way of advertisement, propaganda and salesmanship so that every consumer in the market become their customer which break the laws of consumer sovereignty in the economy.