JAMB - Economics (2013 - No. 16)
One of the criticisms of the price mechanism is that
producers are sovereign
it provides low degree of freedom
it widens the inequitable gap
consumers are sovereign
Explanation
Price mechanism refers to the system where the forces of demand and supply determine the prices of commodities. This means that, prices are left in the fate of market forces negating the concept of consumer sovereignty.
Consumers are forced to purchase those goods which producers want. Thus, the producer is sovereign, not the consumer.