Register
Why is the consumer considered "king" in a capitalist economy?
46.1k views
1 vote
Why is the consumer considered "king" in a capitalist economy?

User Jun Tian
by
8.3k points

2 Answers

3 votes

Answer:

the consumers decide what to produce

Step-by-step explanation:

User GazB
by
8.2k points
2 votes
The idea is that the success of any company depends on the consumer: the price and quality of the product determines how much money the firm will make. In this sense, the consumer organically selects the best companies by spending money on those companies, and in doing so is "king" because consumers determine which companies succeed and fail. 
User Soeren
by
7.6k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.1m answers

Other Questions

Who was Adam Smith ? Anybody?
What can turn igneous rock into sediment?
What is the best way to describe a stock market?
You sell popcorn during your schools football games. Knowing that the people usually buy more when the price is lower, how would you price your popcorn after halftime?
The government has decided that the free market price of cheese is too low. Farmers complain that the price floor has reduced their total revenue.Is this possible? Explain
Link Copied!