Consumers affect which goods and services are produced because they

Question

Consumers affect

Answer 1

THEY VOTE FOR WHICH GODS SHOULD BE PRODUCED!!! However, They vote with their wallets and pocketbooks. This is far more effective than voting at the polls. If something doesn't sell firms stop producing it and those unsold goods will have to be sold at a discount Oro loss). If consumers really like something it is hard to keep on the shelves. Prices rise and other firms see these higher prices and enter the market to produce more. Price and profitability shifts resources the the goods that consumers want the most. This is Adam Smith's invisible hand