Which economic concept is best illustrated by the idea that individuals have the right to decide what to buy, when to buy it, and how to use it?

• A. Market equilibrium
• B. Consumer sovereignty
• C. Scarcity
• D. Opportunity cost

Answer: (B)

Verified step by step guidance

1. Identify the key idea in the problem: individuals have the right to decide what to buy, when to buy it, and how to use it.
2. Recall the definitions of the given economic concepts:
3. - Market equilibrium refers to the state where supply equals demand in a market.
4. - Scarcity means limited resources relative to unlimited wants.
5. - Opportunity cost is the value of the next best alternative foregone when making a choice.
6. - Consumer sovereignty is the concept that consumers have the power to decide what goods and services are produced by their purchasing choices.
7. Match the key idea to the concept that best fits: since the problem emphasizes individuals' freedom to make purchasing decisions, it aligns with consumer sovereignty.