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UI Post-UTME Economics 2013 (Model questions) Question 16

Question 16

Theory of Demand

Demand patterns are determined by the market on the basis of

  1. A.consumer sovereignty
  2. B.consumer rationality
  3. C.price of the commodity
  4. D.scale of preference.
Show the answer and explanation

Answer: A (consumer sovereignty)

Explanation

In a market system consumers are 'king': what they choose to buy with their money (consumer sovereignty) decides which goods are demanded and so what producers make.