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Nezavi [6.7K]
3 years ago
8

How does consumer sovereignity operates in the marketplace to determine the success or failure of an entrepenuer

Social Studies
1 answer:
34kurt3 years ago
5 0

<u>Answer:</u>

With the idea of the<em> primacy of the consumption over the production. </em>The idea of power of consumption over production was presented by <em>Adam Smith in 1776. </em>

He accepted that the interests of the customers are a higher priority than those of the producers in light of the fact that the sole motivation behind production is consumption. <em>They are interrelated; obviously, one is not possible without the other. </em>

For an entrepreneur to be fruitful, they have to regard and study individual needs because these will figure out what should be produced, and, help the success of the producers. <em>Customers have the ability to choose (power) how the market must work.</em>

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