What does consumer's sovereignty means?

Consumers are free to spend their income as they like

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Consumers have the power to manage the economy

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Consumer's expenditure influence the allocation of resources

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Consumer goods are free from government control

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Consumers are free to spend their income as they like
The concept of consumer sovereignty has in fact given rise to the concept of a market economy system. A system where in the consumer tastes and preferences that give rise to demand of goods and services will signal producers which kind of goods to produce more.

Suggest Corrections

Similar questions

A consumer wants to consume two goods. The prices of the two goods are Rs 4 and Rs 5 respectively. The consumer’s income is Rs 20.

(i) Write down the equation of the budget line.

(ii) How much of good 1 can the consumer consume if she spends her entire income on that good?

(iii) How much of good 2 can she consumed if she spends her entire income on that good?

(iv) What is the slope of the budget line?

Questions 5, 6 and 7 are related to question 4.

Join BYJU'S Learning Program