Question

In which situation is a consumer exercising consumer sovereignty?

A person likes the food at a restaurant and attempts to copy the recipes at home.
A person likes the food at a restaurant and recommends it to friends.
A person does not like the food served at a restaurant and refuses to pay.
A person does not like the food served at a restaurant and chooses another restaurant.

Answer 1

The answer is (D) a person does not like the food served at a restaurant and chooses another restaurant.

Step-by-step explanation:

Consumer sovereignty is an economic condition where what the customer wants and needs control what good and/or services the producers must provide. (A) and (B) are incorrect since the producer is influencing the customer instead. (C) is also incorrect because the consumer has already chosen to consume the producer’s goods and thus this implies a form of customer dissatisfaction instead of consumer sovereignty.