Which best describes a key feature of consumer sovereignty?

Consumer sovereignty is a fundamental principle in economics that asserts that consumer preferences and choices determine the production and distribution of goods and services in an economy. The central idea is that consumers express their wants and needs through their purchasing decisions, thereby signaling to producers what to manufacture.

When consumers favor certain products over others, businesses respond by allocating resources to create those desired goods, aligning production with consumer demand. This dynamic relationship means that producers must pay close attention to consumer trends and preferences to remain competitive in the market. As a result, consumer sovereignty empowers individuals to influence market outcomes directly through their purchasing behaviors.

The notion that consumers ultimately guide production decisions underscores the role of individual choice in a market economy, showcasing how demand shapes supply.