In a market system, ____ decide what will be produced.
A) producers
B) consumers
C) politicians
D) government authorities
E) central planning agencies

Question

Quizplus · Accepted Answer

In a market system, consumers ultimately decide what will be produced by their purchasing decisions. Producers respond to consumer demand and produce goods and services accordingly. This is known as the principle of consumer sovereignty, where consumers have the power to determine what is produced by their willingness to pay for certain goods and services. While government authorities and politicians may have some influence through policies and regulations, ultimately the decisions of consumers drive the market system. Central planning agencies, often associated with command economies, are not relevant in a market system.

In a Market System, ____ Decide What Will Be Produced