Question

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

Answer 1

Answer:

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

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. They are interrelated; obviously, one is not possible without the other.

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. Customers have the ability to choose (power) how the market must work.