Economists have a name for this notion of consumer power : consumer sovereignty. Consumers gests that sovereignty suggests that individual consumer have ultimate control over what market produce. As each individual chooses to buy a goods or service. On the other hand, of consumers generally choose not to buy something that was formerly in demand then producers will begin to withdraw it from the market. There is no point in trying to sell goods or services that people no longer want. Box 1.1 illustrates a case in point: the solid brand with a 120-year history. All that past popularity new counts for little: consumer preferences have changed, the market has evolved , and levi Strauss finds it uneconomic to produce jeans in accustomed quantities. The same principle applies if consumers become avid purchasers of a good or service: producers then have reason to increase the amount they produce. The simple presence of consumers or potential consumers also gives firms an incentive to continually refine and improve the quality of their products. A firm that innovates – produces something better or cheaper – will be rewarded with more custom and thus with more profit. It pays firms to de as much as they can to please those who might buy their goods and services. Thus economics also matters in a business context because it is able to identify and understand the nature of the consumer – led governance of market.